MATIC Technical Analysis: Trading Near Support Level of $1.26, Expect a Bounce the Support Level

Matic Network had announced that they are rebranding to Polygon. Polygon (previously Matic Network) is the first well-structured, easy-to-use platform for scaling and infrastructure development on Ethereum. Moreover, Polygon SDK is its key component, a modular, flexible framework for creating multiple types of applications.

Polygon, a full-stack scaling solution built on Ethereum, announced last week the launch of Aragon Client, an Ethereum-based project that enables easy and inexpensive creation and management of decentralized autonomous organizations (DAOs).

Web3 communities have outgrown Ethereum’s current capacity, making DAO management and voting prohibitively expensive. As a part of the Polygon ecosystem, Aragon can now ensure near-zero gas fees for DAO creation, management, and voting on Aragon, as well as faster transactions and a seamless user experience.

Past Performance

On 5th September, the price opened at $1.74 and on the 12th of September it closed at $1.33, there are no significant price changes in the last week. Thus, the volatility of MATIC is low.

The current price of MATIC is $1.27, which is down by 4.39% in the last 24 hours.

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MATIC Technical Analysis

On the daily chart, the OBV is downward sloping, suggesting a dip in the volume.

The RSI is at 42.90% and is continuously making a downtrend on the chart, suggesting the selling pressures for MATIC are very high. RSI is making an inverted W on the chart, and the current RSI is making a downtrend, we might expect the RSI to fall further down.

MACD lines are forming a bearish crossover. We can expect the price to fall for the rest of the day. Also, MACD lines are near the zero range. Indicating that the trend reversal is on the horizon.

Day-Ahead and Tomorrow

MATIC is constantly making higher highs on the chart, thus giving us a bullish signal. However, it is currently trading near its support level of $1.26. We can expect it to bounce back after taking support from this level. If the price breaks down, it will test the next support level that is $1.12. Thus, traders can take a short position accordingly.

However, if the buying pressure takes over the selling pressure, the price will try to break out of its resistance level of $1.37. After a breakout from this level, traders can take a long position by keeping a target at $1.49 and stop-loss at $1.21.

   
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