Since November 18, the MATIC price has doubled in value. However, once it reached 340 satoshis on November 28, it began a rapid downward move — decreasing by 14 percent in just four hours.
The downward move was caused by a breakdown from the current trading pattern. However, it pales in comparison to the preceding increase. The long-term outlook for the MATIC price is still positive. Additionally, the MATIC network has greatly grown in popularity since its inception in May. Currently, they are supporting Thai blockchain week and today they celebrated 25k twitter followers.
Full-time trader @cryptoMichNL tweeted out that he believes that the MATIC price has reached a significant resistance area — which is not likely to be broken.
And this one is (as far as I can say) at resistance here.
I don't think we're able to break that hard up now and retrace would be quite healthy.
Still aiming at the green zone for a potential entry.
+110% in 2 weeks though. pic.twitter.com/xCKOn6CDEb
— Crypto Michaël (@CryptoMichNL) November 28, 2019
Additionally, he suggested that a retracement would be a sign of a healthy market.
Will the MATIC price retrace? Where will it find support? Keep reading below if you are interested in finding out.
Matic Network Trading Range
The most important support area is found at 220 satoshis while resistance is found at 340 satoshis. The MATIC price reached the latter on November 27 and 28, creating a long upper wick each time. This is a sign of selling pressure, strengthened by the fact that it is occurring at a significant resistance area.
Also, the MATIC price is in the process of creating a daily bearish engulfing candlestick. A price close below 290 satoshis would likely indicate that the MATIC price is moving towards the support area at 220 satoshis.
Looking at lower time-frames, we can see that the MATIC price had been trading inside an ascending channel over the past five days.
After developing significant bearish divergence in the RSI, the price broke down amidst a bearish engulfing candlestick that was bigger in size than any other candle inside the channel.
While the MATIC price will not necessarily decrease all the way to the major support area of 220 satoshis, it is very likely to reach the minor support area at 270 satoshis.
To conclude, the MATIC price broke down from a short/medium-term pattern and will likely retrace for a period of time. However, the long-term outlook has yet to turn bearish — allowing for the possibility that the current upward move will eventually continue.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Shutterstock, TradingView.
The post Matic Network Has Doubled in Value Over the Past Two Weeks, but Trader Hints at Retracement appeared first on BeInCrypto.
Source: Be In Crypto