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MATIC price is currently undergoing a correction. Over the last 24 hours, the coin has lost more than 4% of its market value. Signs on the chart currently suggest that MATIC is going to remain in the correction territory for some time.
All the gains that Polygon (MATIC) secured in the past week were undone due to the loss on the daily chart. Technical outlook also implied that the price momentum for the altcoin was regressive and demand for the altcoin declined over the past few days.
From the daily chart reading, it is difficult to ascertain where the MATIC price will find support. The altcoin is depicting signs of significant resistance in both the shorter and longer time frame. A bullish reversal seems unlikely as buyers have lost confidence in the asset.
For MATIC the past few months have been quite tough as the coin continued to fall despite reserving the $1.31 price mark for some time in the past month. At the present moment, MATIC is trading at a 69% low compared to its all-time high registered almost one year ago. It is now imperative for MATIC to break past the $0.96 level for registering some positive price movement.
MATIC Price Analysis: One-Day Chart
The coin has broken its lower band of consolidation and is on a downward spiral. The overhead resistance for the coin was $0.94. A move above $0.94 will secure the altcoin’s move to $1 or even higher.
Since MATIC has broken on the downside of the consolidation, further depreciation can follow. In that case, the altcoin will fall to $0.84 and then below the $0.80 price level. The amount of the altcoin traded in the last session fell and was red, indicating that bears were mauling hard. The altcoin was exchanging hands at $0.88 at press time.
Technical Analysis
The coin has formed an ascending support line. Typically, this is a bullish sign; however, in this case, MATIC is moving closer to the line. This indicates that the coin will fall below the $0.88 line and fall close to $0.84, which is another 4% depreciation.
The Relative Strength Index (RSI) was under the half-line, meaning that sellers had taken over the price. In regards to sellers, the price of the altcoin fell below the 20-Simple Moving Average (SMA) line. A fall beneath that indicates bearishness, as sellers were driving the price momentum in the market.
Investor interest also showed a decline on the daily chart. The Chaikin Money Flow represents the capital inflows and outflows at a given point. CMF portrayed a downtick which meant a fall in capital inflows, although capital inflows were still exceeding capital outflows at press time.
Related Reading: Ethereum Price Resilience Gives us Pause, but Not out of Woods Yet
The Directional Movement Index (DMI) indicates the price direction. DMI was negative, as the -DI line (orange) was above the +DI (blue) line. The Average Directional Index (red) was below 20-mark, which meant that the coin’s price momentum has lost all strength. This corresponded with a further fall in the price for MATIC.
