The past few weeks saw Matic through a steady decrease, bringing the market to a critical support area. While it decreases by more than 20% in a month, these losses are just a tip of the iceberg as a bigger drop lies ahead.

Looking back, Matic started to lose momentum in late December after tapping a multi-month high. Selling volume increased and the drops became more notable with a sharp nosedive earlier this month. 

It recovered a week after and initiated another drop in the following week. It faced a lot of obstacles on the way till the price reached a critical support level of $0.74 yesterday, marked orange on the price chart. 

After trying to defend this support levels for two months, the bulls are now losing strength as they battle against the bears – which have been gaining control of the market since the start of the year. 

Although they have reacted to this level in the past hours, they appear weak amid the latest bearish footings, which are getting stronger by the day. The bulls are on the verge of losing this support again after a slight breakdown yesterday. 

A successful crack could position this market for a huge drop. As we can see, the candle formation is becoming bigger on the daily chart. A rejection at this support may produce a small bounce before it finally breaks down. 

Matic’s Key Levels To Watch

Source: Tradingview

The potential support levels to watch for breakdown is $0.667. If the selling pressure increases and this level fails to hold, the next support would be $0.6 and $0.55. 

For a rebound, Matic must climb back above the $0.74 level. Then we can expect an increase to $0.83. If the price recovers above this level, the higher resistance level to watch is $0.95, followed by $1.095.

Key Resistance Levels: $0.83, $0.95, $1.095

Key Support Levels: $0.667, $0.6, $0.55

Spot Price: $0.733
Trend: Bearish
Volatility: High

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: skorzewiak/123RF // Image Effects by Colorcinch

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Filed under: Bitcoin - @ January 24, 2024 2:19 pm