MATIC can break the $2 support and drop lower

The MATIC rally has ended after hitting a new all-time high of $2.9. The price is currently correcting and is fast approaching the $2 mark.

• Major support levels: $2, $1.8
• Major Resistances: $2.4, $2.9 (ATH)

After a great performance towards the $2.9 high, MATIC has lost momentum and is currently correcting towards the key $2 support. The $2.4 level was confirmed as resistance and the price formed a lower spike there.

On the way up, MATIC formed a large bearish wedge (shown in blue on the first chart) and now the price appears to be breaking below the pattern. The cryptocurrency is likely to continue correcting or consolidating over the next few days.

 Source: TradingView

Technical indicators

Volume: Trading volume has fallen after hitting an all-time high and MATIC has corrected low volume.

RSI: The daily RSI is making lower highs, which is a typical sign of a downtrend. This will likely continue until MATIC finds new support.

MACD: The daily MACD failed to form a bullish cross and fell into negative territory. Support downtrend continuation.

Source: TradingView

Perspectives

MATIC’s current trend is down.

It is currently approaching the $2 support. Losing this level can lead to a quick drop towards $1.8. Price action and technical indicators suggest that a break of this support level is very high.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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