Can MATIC Salvage Bullish Trend? | Credit: Veronica Cestari
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Key Takeaways
MATIC nearly broke down from a 175-day ascending parallel channel on April 10.
The price has been trending downward since a high of $1.30 on March 13.
Can MATIC bounce to end the week and save its long-term positive trend?
The price of MATIC has not performed well in 2024. In fact, it has fallen by 9% since January 1. Moreover, the price risks breaking down from a long-term ascending parallel channel.
Whenever the price of an asset trades inside a pattern for a long period of time, the first movement outside of it often marks the beginning of a new trend at an accelerated pace.
Will the same happen to MATIC, or will the price bounce and reclaim the channel’s support trend line?
MATIC Breaks Down From Channel
The price of MATIC has increased inside an ascending parallel channel since October 2023. More precisely, the channel has existed for 175 days. During this time, MATIC validated both the support (green icons) and resistance (red icons) trend lines of the pattern multiple times.
More recently, the channel’s resistance trend line rejected the MATIC price on March 13. While it initially bounced at the support trend line on April 5, MATIC broke down from the channel on April 10 (red circle).
MATIC/USDT Daily Chart | Credit: TradingView
The daily time frame MACD and RSI both trend downward. Also, the RSI is below 50, and the MACD is in negative territory, which are both considered signs of a bearish trend. The closest horizontal support area is at $0.75, 13% below the current price.
MATIC Price Prediction: Is the Long-Term Trend Still Bullish?
While the daily chart shows an ongoing breakdown, the weekly one shows the MATIC trend is still bullish. This is because MATIC broke out from a 784-day descending resistance trend line in February and is now returning to validate it as support (green icon).
However, what is concerning is the deviation (green circle) above the $1 horizontal area, which now acts as resistance.
The weekly price close also has implications regarding the RSI and MACD. Currently, the RSI is at 50, while the MACD has nearly made a bearish cross. Whether the price bounces at the long-term trend line or breaks down below will determine not only if the price breakout is valid but also if the long-term indicator readings are bullish or bearish.
MATIC/USD Weekly Chart | Credit: TradingView
If the MATIC price falls and closes the week at the $0.75 support area as outlined in the daily time frame, it will confirm a weekly close below the long-term trend line, likely causing a bearish confirmation in both the RSI and MACD.
MATIC Faces Critical End to the Week
The MATIC price has fallen since March and broke down from a long-term pattern on April 10. Despite the breakdown, the long-term breakout remains intact. However, a weekly close below $0.80 can invalidate this breakdown, having bearish implications for the long-term trend.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
