In months when the scenario within the crypto asset market seems to be planting itself with a strong upward trend, crypto assets such as Matic, which is even located in the top 10 market capitalization, have lagged behind contemplating the increase in prices of bitcoin and other altcoins.
However, it is worth mentioning that for this cryptocurrency, the scenario does not look as negative as one might believe, since it is in a clear accumulation phase in the area of 0.90-1.20 USD since a while now. This, therefore, generates the expectation that when there is a strong inflow of capital, the price will rebound greatly.
In this same sense, it is worth remembering that last time we mentioned how The developers at Matter Labs, in charge of managing Polygon, had created an optimistic and bullish narrative around the network in the middle of the bear market. Likewise, the market capitalization of Matic also stands out, showing itself on the same upward path that was indicated, and despite the previous falls and market shocks, the money in Matic appears solid and in strong hands that are surely observing a scenario long-term.
Source: Tradingview Marketcap Matic 1D
That being said, and without further ado, in the technical analysis scenario, for the matic chart in one month (1M), So far this year, the price of this cryptoactive has reached an increase of 106.76%, but as of today, only one of 47.36% can be seen under strong resistance exerted by the 20-week moving average (black) in this temporality.
Source: Tradingview Matic 1M
Regarding the weekly chart (1S), a retracement can be seen within a contraction formation between the two moving averages of 20 (orange) and 100 weeks (green), a natural movement under the circumstances that we observe in the monthly temporality where there was strong resistance at the level of USD 1.20 for the 20-month average, which in this time frame is represented by the 100-week average. Currently, the bears and bulls are fighting to take control of the trend.
Source: Tradingview Matic 1S
On the other hand, on the daily chart (1D) as a result of this retracement, a bearish engulfing candle has formed pulling the price closer to the middle area of the bullish channel which, consequently, given that in this period of time the price was also in contraction and has broken the support exerted by the 20-day MA, if it does not recover above it, the bassists will have won the battle and with enough force “sink” the price to the area of 1.045-1.02 USD, close to the MA 200 days (fuchsia). In a more dramatic scenario, the zones to take into account and be alert will include the one at 0.93 USD and 0.86 dollars, the floor of the channel.
Source: Tradingview Matic 1D
Finally, regarding the slow and progressive continuation of the bullish channel, The key resistance to beat for now has become $1.20 (20-week MA).it is possible that if it takes a long time, the bullish formation of the moving averages in a row (20, 50, 100, 200) could be the signal that sooner rather than later this will happen along with the capital inflow.
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