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MATIC Rallies but Has Yet to Confirm Bullish Trend

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The Matic Network (MATIC) price has been increasing since reaching a bottom on Nov 4.

On Nov 4, the MATIC price reached a local low of $0.0110, and finally reversed the downward trend which had begun on Aug 15.

The low coincided with the 0.786 Fib retracement level of the entire previous upward move, increasing its significance.

 

MATIC Begins to Bounce

The price began to bounce immediately after the low and has already reached a high of $0.0220, breaking out from the $0.0180 resistance area in the process.

This area is now likely to act as support, while the next closest resistance area is found at $0.0235, an area that has to be cleared before the price could make an attempt at reaching the August highs near $0.0320.

MATIC Retracement
MATIC Chart By TradingView

Cryptocurrency trader @CryptoNewton outlined a MATIC chart, stating that the price could soon break out to targeting $0.023 and $0.030.

Both targets fit with the resistance areas we have outlined, but a closer look at technical indicators is required in order to determine if MATIC will be able to reach them.

MATIC Breakout
Source: Twitter

Will the Upward Move Continue?

Technical indicators in the daily time-frame are bullish.

The RSI, MACD, and Stochastic oscillator are increasing, and there are no bearish divergences.

Therefore, the upward move is expected to continue until at least $0.0235.

MATIC Indicators
MATIC Chart By TradingView

The shorter-term 6-hour chart shows that the price is facing resistance from the middle of a parallel channel, inside of which it has been trading in since the upward move began on Nov 4.

Furthermore, the RSI has generated bearish divergence, a sign that a short-term decrease is likely. MATIC is expected to drop towards the support line of the channel near $0.0185. However, as long as the channel remains intact, MATIC is expected to continue moving upwards towards the previously outlined resistance areas.

MATIC Channel
MATIC Chart By TradingView

MATIC/BTC

The MATIC/BTC price reached a low of 90 satoshis on Nov 4 and began a slight bounce.

Despite the increase, the trend is still bearish, since the price is not even close to the previous support area.

Until the price is able to successfully flip the 170 satoshi area, the trend is considered bearish. Technical indicators have not given any bullish reversal signs.

MATIC/BTC
MATIC Chart By TradingView

Conclusion

While the MATIC/USD price is expected to increase towards the closest resistance area, it is not yet clear whether the long-term trend is bullish or bearish.

On the other hand, the trend for MATIC/BTC is still bearish, despite the fact that the price has begun to bounce.

For BeInCrypto’s previous Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto

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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo.
In 2019, he decided to focus full-time on cryptocurrencies and trading.

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Source: https://beincrypto.com/matic-rallies-but-has-yet-to-confirm-bullish-trend/

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