MATIC Can Bounce Back If It Remains Above Bullish Order Block
01 March 2023 - 10:30PM
NEWSBTC
MATIC is trying to recover on its daily chart, as it appreciated by
3% in the same time frame. The past week for the altcoin was
negative as it lost more than 9% of its value. The broader market
has also remained considerably volatile in the past few weeks, with
Bitcoin falling into the $23,000 price zone. Due to this, most
major altcoins have also struggled to break past their immediate
price ceilings. Likewise, the technical outlook of MATIC has also
maintained a bearish outlook, but the chance of recovery cannot be
ruled out. Related Reading: Aave Declines, Vitals Levels To Keep An
Eye On Demand for the altcoin fell, but if buyers exert a slight
push, MATIC could witness increased accumulation in the near term.
At the moment, it is important that MATIC remain above its
immediate support level. By doing so, the coin will gain some
stability, and bulls could start to take control. The market
capitalization of MATIC also fell, indicating that the number of
sellers had increased at the time of writing. MATIC Price Analysis:
One-Day Chart The altcoin was trading at $1.26 at press time. The
immediate resistance for MATIC was $1.29. If the altcoin is to
recover, it needs to remain above the bullish order block. A
bullish order block starts where the last bearish candle ends
before the price starts to depict a turnaround. The bullish order
block stretched from $1.20-$1.22. This range has acted as a support
region for the altcoin. MATIC has to trade above this range in
order for the bearish thesis to be invalidated. A fall from the
$1.20 mark will take the coin straight to $1.17. This would cause
the bears to gain strength. The amount of MATIC traded in the last
session was green, which indicated that buyers might be attempting
to return to the market. Technical Analysis Although buying
pressure was low, the altcoin began to show signs of recovery. The
Relative Strength Index was still below its neutral zone, which
meant that sellers had the upper hand. Although that was the case,
buyers were trying to re-enter the market. For buyers to take
control, MATIC has to trade above $1.29. On the same note, MATIC’s
price dropped below the 20-Simple Moving Average line (SMA) as
sellers were still driving the price momentum on the chart. Since
the price was above the 50-SMA (yellow) line, it indicated that
bullish momentum could slowly build up over successive trading
sessions. Other technical indicators have also pointed towards
bearish signals. The Moving Average Convergence Divergence, which
indicates the price momentum and the trend reversal had formed red
histograms, which were the sell signals for the altcoin. Related
Reading: A Breakout Past This Level Can Make Fantom Touch $1
However, the red histograms were declining in size, which implied
that the price was trying to recover. Bollinger bands measure the
price volatility and fluctuation on the chart. The bands were apart
and parallel, indicating that there could be an incoming
fluctuation. The subsequent trading session is crucial for MATIC’s
price. Featured Image From UnSplash, Charts From TradingView.com
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