Matic Network (MATIC) has fallen below a crucial horizontal support area, and various time frames have bearish indicators.
MATIC has been trading inside an ascending parallel channel since May last year, when it first touched a high of £2.19. The price achieved an all-time high of £2.36 on December 27, validating the channel’s resistance line.
The high was accompanied by RSI bearish divergence. Because the discrepancy occurs on a weekly basis, it is quite substantial. Since then, MATIC has been sliding and is now approaching the channel’s support line.
The RSI has now dipped below 50, which is a bearish event. The previous cross above 50 signalled the start of the rising trend that eventually saw the all-time high.
A drop below 50 could potentially signal the start of a bearish trend.
MATIC broke down below the £1.11 area on April 26 after bouncing above it four times as per daily time frame. It is now expected that the area will provide resistance.
The RSI and MACD are both declining and bearish, similar to the weekly time frame. Despite the fact that the RSI is highly oversold, a bullish divergence is not present.
A dip towards the channel’s support line is projected as a result of both the price action and the bearish indications.
While MATIC has risen to a high of £0.96, the price has been sliding since this validated the resistance line of a shorter-term ascending parallel channel.
Because such channels frequently contain corrective movements, a decline towards the channel’s support line and eventual breakdown appears to be very likely.
MATIC/BTC, like the USD pair, is seeing bearish price action. On April 4, it fell below the 3600 satoshi support region and has been sliding rapidly since then. It is now expected that the area will provide resistance, with the nearest support area at 2600 satoshis.