At the time of writing, the price of MATIC is falling. The altcoin had secured considerable gains in February, most of which were reversed due to its depreciation. Over the last 24 hours, the coin fell by 3%, and MATIC dipped by almost 9% in the past week.
The technical outlook of the altcoin signaled bearish strength with chances of further depreciation. The buying strength of MATIC declined. Both demand and accumulation also registered negative movement on the one-day chart.
At the moment, MATIC is eyeing its local support. If MATIC loses its current price level, the next stop might be below the $1 mark.
As Bitcoin continues to move south on its chart, most altcoins have also witnessed hindrances on their respective charts. If Bitcoin revisits the $23,000 zone, the major altcoins will rise. The market capitalization of MATIC plunged, which indicated that sellers were driving the price in the market.
MATIC Price Analysis: One-Day Chart
The altcoin was trading at $1.09 at press time. The coin fell off from a crucial support level of $1.13, which caused the coin to be free-fall. If demand for the coin does not rise on the one-day chart, then MATIC might travel below the $1 mark.
The overhead resistance for the coin stood at $1.11 and then at $1.13, respectively. Conversely, the local support for the altcoin rested at $1.07 and then $1.05.
A fall below the $1.05 mark will drag MATIC to $0.90 and then to $0.80. The amount of MATIC traded in the last session was red, meaning there has been a fall in buying strength.
The altcoin has registered a significant fall in buying strength since last month’s end. The Relative Strength Index was below the half-line, meaning sellers had taken over buyers in the market. The indicator fell below 40 and was inching toward the oversold territory.
A fall below $1 is imminent if buyers don’t step in. If demand increases, the altcoin can turn its price around, displaying a recovery on the chart.
On that note, the altcoin was below the 20-Simple Moving Average line as sellers were driving the price momentum in the market.
Other technical indicators suggest MATIC continued to display sell signals on its chart. The Moving Average Convergence Divergence indicates price momentum and trend reversal. The indicator formed red signal bars, which are tied to sell signals.
Sell signals often represent a chance of the price diminishing further. The Bollinger Bands measure price fluctuation and volatility.
The bands grew apart, which indicated that the price might witness incoming volatility. For MATIC to recover, it is imperative that the coin travel above the $1.12 resistance level. With the coin moving closer to the undervalued zone, recovery could take some time.
Featured Image From UnSplash, Chart From TradingView.com