Matic Network ( MATIC ) is certainly the altcoin of the hour, after the most dramatic price fluctuation in the cryptoasset markets during late November. After climbing more than 200% within two weeks, MATIC has today – in a matter of hours – given back all of those gains. The violence of the drop does not bode well for an extension of the uptrend.
We start with a 4-hour MATIC/BTC chart, and see a slaughter. A bearish divergence on the RSI, deep in overbought territory, slightly telegraphed the massive move down. The 21 and 55 EMAs put up absolutely no fight, being sliced-through instantly.
It is hard to know whether this move was caused by a few holders unloading their bags, or whether the market was just very on edge after such a dramatic uptrend. But whatever happened, the market was clearly ready to sell, and stop-losses were set very tight.
For a longer view of MATIC, we must head to Cointrader who hosts more complete charts (although this chart is not exactly the same as the TradingView charts). On this daily MATIC/BTC chart, we can see that price was stopped exactly at the previous all-time high, at about 560 sats. On this chart there is a slightly more forgiving retracement, with price more or less holding within the 200 satoshi area.
We also see that there was no bear divergence showing up on the daily timeframe to telegraph this move, although the drastically overbought conditions was clearly enough to encourage investors to tighten their stops. It would have been much more encouraging for MATIC to hold some more reasonable historical level, perhaps at 340 or 380 sats, rather than taking out almost every retracement level.
However, moving to the 3-day MATIC/USDT chart from Binance, we see that MATIC is stabilizing above a key level, which has served as the principal support/resistance during all of Matic’s price history. Closing above this level, in a day, would be positive, and we could see some serious bounce action on MATIC if this happens.
In case of a larger bounce, we should expect selling around $0.30, at the golden pocket Fibonacci level (.618-65). However, given the stiff rejection at the all-time high and destruction of the uptrend, we should not expect this altcoin to retest that high again any time soon.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
Featured Image Credit: Photo via Pixabay.com