Compared to other Layer 2 tokens, which have seen a notable increase in the past few days, Matic struggles with volatility as it briefly recovers. It encountered resistance and now looks poise for a fresh drop.
Following a monthly crash to a two-year low of $0.428, Matic quickly rejected the low-price level and bounced back. This led to a two-week increase, which later turned out insignificant due to low buying volume.
During that period, it managed to reclaim some lost grounds but later faced resistance at the $0.57 level this week. A rejection occurred and the price retraced to around $0.53 at the time of writing.
From a technical perspective, Matic currently looks primed for another drawdown. Meanwhile, it is sitting on a weekly support of $0.5.
A dip below this minor support could roll the price back to its two-year low. Losing this low in the process could trigger another collapse, which will likely cause more pain in the market.
If the price increases with a break above the monthly high, we may see a massive surge in the next few days. Matic’s demand currently looks low. The overall market outlook remains bearish weekly. Matic must climb back above $0.8 before one can start to consider a change in the trend.
Matic’s Key Levels To Watch
Source: Tradingview
The price is currently down 2% today. A drop below the weekly low could slide the price to $0.428. A new support may surface at around the $0.32 level (June 2022 low) if a breakdown occurs.
Above the monthly $0.574 high lies the $0.645 resistance. If the surges through all these immediate levels, the next main resistance to keep in mind for a test is $0.77.
Key Resistance Levels: $0.574, $0.645, $0.77.
Key Support Levels: $0.5, $0.428, $0.32.
Spot Price: $0.534
Trend: Bearish
Volatility: Low
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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