The price of MATIC has been declining for the past five months, bouncing off the white trend line (in the chart) as resistance. However, it broke above the downtrend line and now appears bullish, ready for further upward movement.
One of the major catalysts for the price surge has been the announcement about the migration from MATIC to POL, which is scheduled to happen on September 4. Since the announcement three days ago, MATIC has spiked by more than 30%.
This momentum also caused it to break above the descending trendline, changing the price action structure to a bullish one.
Supporting the bullish outlook, the price has also broken out above the 50-day SMA (orange line). A sustained move above the SMA could indicate that the price will continue moving up.
Doge2014 raises 450K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!
Show more +The price had been consolidating in a support zone around $0.50 before the breakout. The current price action suggests that MATIC is testing a resistance zone between $0.52 and $0.56. If the price can close above this resistance level, it could confirm a breakout and lead to further upside.
The Relative Strength Index (RSI) has moved up sharply and is currently at around 65.57, approaching the overbought level of 70. This move shows strong momentum; however, it might see a minor pullback or some consolidation at the overbought level. With this in mind, traders should be cautious when the RSI reaches the overbought level.
Next Possible Scenarios for MATIC
Bullish Scenario: If MATIC maintains its position above the trend line and 50-day SMA, it could continue its bullish momentum. However, a break above the resistance zone at $0.52-$0.56 is necessary for continuation. Following this, the next key level that needs to be broken is around $0.70.
Read Also: Top Analyst States Condition for Bitcoin (BTC) Price Spike to $100k and When It Could Happen
The RSI approaching the overbought zone indicates strong momentum, but buyers should be cautious of a potential pullback if it becomes too extended.
Bearish Scenario: If MATIC fails to hold above the $0.52-$0.56 resistance zone and experiences a rejection, it could pull back towards the previous support around $0.50.
A failure to stay above the 50-day SMA could lead to a resumption of the downtrend.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
