In this new Wednesday crypto nugget, our big winner of the day from our social network poll is MATIC, the native cryptocurrency of the Polygo blockchainn. Holding up particularly well during bear marketthe fact is that this asset is also subject to the fluctuations and volatility of the market. selling power of the crypto market. With this in mind, what can we expect from this asset over the coming months? An unexpected rebound? A future breakout from its previous highs ? That’s what we’re going to find out without further ado in this new analysis of your crypto nugget, Wednesday’s chronicle.
MATIC’s notable rejection of major resistance
First, let’s take a look at the asset’s weekly situation, which will give us an idea of its performance. rather global view of MATIC’s performance in recent months. After a particularly bullish start to 2023, which took the asset to the 1.50 in FebruaryWe can’t say the same for the last few months, which have instead been marked by numerous red candles.
Evolving in a wide lateralization zone, MATIC broke down a pivot (shown in blue on the chart) at $0.77/0.79. As a result, the current momentum is rather bearish, with descending lows and highsit will be difficult to have anything other than a bearish bias until the asset’s pivot zone is regained.
For the time being, let’s keep our eyes riveted on the lower technical level at $0.55. Having enabled MATIC to rebound at the beginning of June, it has to be said that it is now a support which, provided it is not broken on the downside, will enable MATIC toavoid a fall towards the 0.38 dollar which, in view of the information on the chart, turns out to be a interesting buying zone for all those wishing to invest in MATIC for the long term.
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Many technical levels to watch
On a more precise time scale, on a daily basis, MATIC’s situation is no better, since the price has returned to previous resistance at $0.70. It is on the price’s reaction to this level that the bullish and bearish scenarios for the rest of August are based. If MATIC manages to recapture this level, it will be the first sign of a upward turnaround with a return to the weekly pivot zone before seeking higher levels.
However, if MATIC continues to evolve below the 0.70then it will preserve its downward momentum and will initially return to 0.60 dollarThis is the last technical support where MATIC could rebound before coming back to the support that enabled MATIC to rebound during the last quarter. June. With descending peaks and troughsbuyers are more likely to be poor positionThis brings us to the asset’s position in relation to bitcoin.
MATIC in trouble with the king of cryptocurrencies
For the MATIC/BTC pair, a major pivot (grey zone) was broken to the downside over the past few months, reflecting the lack of strength of the asset against the king of cryptocurrencies. The challenge now lies in MATIC’s ability to recapture this weekly level and reverse its upward trend. If MATIC succeeds in doing so, it could be a great opportunity to regain a share of the market. bullish momentum against the dollar.
So, as long as MATIC is moving below this weekly pivot, the bias to have will rather be bearish for the coming weeks with a return to the May 2022 low. In this context, when bitcoin underperforms, it is sometimes more difficult to witness a nice uptrend against the dollar. Of course, such a situation is not always the case. definitivebut it must be taken into account.
Here we are at the end of this technical analysis of MATIC as part of Wednesday’s crypto nugget. For the time being, in view of the weekly and daily price dynamics and the situation with bitcoin, it’s clear that the bias to be had is rather bearish. In this context, it is worth bearing in mind the scenarios plotted on the daily chart. The weekly pivot zone has clearly an influencebut for all that, now is the time for buyers to come forward back to $0.70. However, while technical analysis may focus on MATIC, developments in tokenomics and the transition to the POL token are likely to bring volatility to the price. To find out more, take a look at our latest article on the subject.
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