- MATIC price made another new high today( $0.079)
- The price is in a continually testing previous days’ high and making new highs which suggest that the bull rally is likely to sustain
MATIC price is in a bull run and refusing to show any weakness. The bull run’s strength is backed with volumes and price range volume analysis, which shows that the volumes are still higher than the 20-day average, whereas there are still higher buying volumes over the selling volume at the current levels. The market cap and 24-hour volumes are $381,881,152 and $149,051,577 respectively during the market session.
Symptoms Of Weakness, Detected In The Indicators
MATIC price makes full-bodied candles or smaller shadow-candles, which indicates the strength of bull run as very strong. Also, the strength is depicted in the volumes above the 20-day average and a higher number of buyers.
The price is hovering above the 20 EMA($0.0446) and 50 EMA($0.0359). However, the recent two candles have increased the gap between the price and EMAs, which can be treated as divergence. Divergences often bring in reversals in the existing trends, so one needs to be careful to exit if the price shows further signs of reversals in the upcoming market sessions.
The RSI has surpassed 80 levels, creating a very high possibility of plummeting or consolidating. The RSI also shows diagonal support, which can be used as confirmation for reversal if it gets broken.
The MACD(8,21,5) displays a divergence of the signal line and slow line; such divergence(gaps) specifically brings consolidation or even reversal if there is any bearish crossover. Also, the indicator’s lines are at an all-time high, the formation of the top has already risen.
Conclusion –
After making another new high, MATIC price has shown further signs of a possible reversal in the form of divergence over EMAs and MACD and overbought zones in RSI. Traders should not enter the coin presently and wait for a retest of immediate support.
Support:$0.072(VWAP), $0.05(10EMA), $0.046(20EMA) and $0.036(50EMA)
Resistance: $0.08(Fibonacci Level 261.8%)