MATIC Price Movement Analysis for 9th September, 2021

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MATIC has had a difficult couple of days. After reaching $1.80 for the first time in three months, the alt fell due to profit-taking by retail traders. Losses were exacerbated when a broader sell-off erupted throughout the market, accounting for a near 40% drop in just three days.

While buyers responded with some short-term gains, the 4-hour 200-SMA is likely to limit MATIC’s comeback. MATIC was worth $1.39 at the time of writing, up 1.5 percent in the previous 24 hours.

MATIC Hourly Chart

A symmetrical triangle aided MATIC’s recovery as the price climbed above its hourly 50-SMA (yellow). With near-term momentum resting with buyers, the $1.48-level looked ripe for taking. An extended bullish response would allow MATIC to push all the way through to $1.56. This was the bottom line of MATIC’s descending triangle setup.

However, such moves would be short-lived as long as the wider market trend remains bearish. This also coincided with the fact that MATIC was trading close to its 4-hour 200-SMA (not shown). The same could restrict gains going forward.

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As MATIC’s symmetrical triangle took shape, a couple of candlewicks dropped as low as $1.11 and $1.18. Interestingly, the aforementioned lines functioned as a critical resistance zone between late-June and mid-July. Flipped to support at press time, this area could come under the spotlight if sellers trigger another market decline.

Reasoning 

According to MATIC’s indications, bullish momentum was being maintained to some extent. The hourly RSI recovered over 50 and levelled up little above the mid-line. On the back of a bullish twin peak configuration, the Awesome Oscillator also shifted above its equilibrium.

The Directional Movement Index recorded a significant crossover between the +DI and -DI lines, indicating that buyers have taken control of the market in the short term. An ADX reading of 22, on the other hand, indicated that the uptrend was waning.

Conclusion 

While MATIC may push through $1.46 and $1.56 owing to reactionary purchasing, the price is projected to consolidate at lower levels. This stability may be found at $1.30 — a level that has remained stable since mid-August.

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MATIC’s final resort was $1.11, where the market would lose its bullish structure and shift to a bearish trajectory.

 

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