MATIC’s price dropped to $0.9260 as the crypto market collapsed on Tuesday. However, the price has made a 27% recovery till now. At the time of writing, MATIC was trading at $1.18 with a market capitalization of $7.44 billion.
MATIC hourly chart
Source: MATICUSD on TradingView
As the price recovered from the brutal fall witnessed earlier this week, it has been hitting a consistent high at $1.19. The asset has been reporting higher lows on its journey upwards, forming an ascending channel with the base at $1.19. This was a bullish pattern and could result in the price breaking out.
Reasoning
MATIC’S price has remained contained under the resistance and as price squeezed within the ascending triangle, it could lead to a sharp swing, potentially upward. Buying pressure was also slowly rising.
The Relative Strength Index indicator showed that MATIC hit equilibrium as the price began consolidating close to $1.19. However, the signal was moving higher, suggesting that buying pressure was on the rise. A rise in buying pressure could add momentum and shoot the price 15% higher.
Visible Range was noting that most trading was taking place at the current price level and if the price appreciates, MATIC could hit $1.38. The 50 Moving average had slipped under the price bars and was currently offering an additional level of support, in case the price turns around.
Conclusion
MATIC market was building up for a bullish breakout if the buying pressure rises. However, a failure to breach the current resistance at $1.19 could likely push it down to $1.11. Traders in the market may want to wait for the signs of a price breakout before placing their bets as the overall crypto market has maintained a bearish outlook.
