The MAGIC price increased by nearly 80% on Dec. 12. However, it is in the process of creating a long upper wick. The MAGIC price may have reached a local top.
MAGIC is the native token of the Treasure metaverse, a decentralized non-fungible token (NFT) ecosystem for metaverse projects. The MAGIC token is also used to manage ecosystem activities and is the sole token used for marketplace trades. The three core products in which it is used are Bridgeworld, The Beacon and Trove.
The MAGIC price broke out from a descending resistance line on Dec. 3. Still, it accelerated its upward movement only on Dec. 12. The rate of increase accelerated after the price bounced at the $0.48 horizontal area, which previously provided resistance. The same day, the price reached a high of $1.01, the highest price since May, but well below the all-time high.
There are no bearish reversal signs in place yet. The RSI is increasing and has not generated any bearish divergence. However, the MAGIC price has yet to close above the $0.92 resistance area. Doing so could accelerate the rate of increase toward the next resistance at $1.80. However, a rejection could cause a fall toward $0.48.
The Binance listing likely aided the increase. On Dec. 12, the Binance exchange announced that it will list MAGIC in the Innovation Zone. As a result, it added three spot trading pairs to MAGIC; the BTC, BUSD and USDT pairs. Moreover, Binance announced that the BUSD and USDT pairs will also be available for margin trading. Therefore, this positive Binance news likely catalyzed the ongoing increase.
Bullish and Bearish Outlooks For MAGIC Price
There are two outlines for the direction of the future movement.
The bearish one (black) suggests that the MAGIC price just completed an A-B-C correction, in which waves A:C had an exactly 1:1 ratio. If true, the price will not break out from the current ascending parallel channel, but rather will fall toward its midline at $0.60.
The bullish count (white) suggests that the MAGIC price is mired in a new bullish impulse instead. If true, the price will increase toward the 1.61 Fib extension at $1.37 before validating the channel’s resistance line as support.
A closer look at the movement since Nov. shows that the MAGIC price completed a five-wave upward movement. In it, wave five was extended, having the same length as waves one and three.
As a result, the bearish count is more likely since it seems that the upward movement came to an end. If it transpires, the MAGIC price will fall toward the $0.55 horizontal support area during the next 24 hours before eventually resuming its upward movement.
A breakout and reclaim from the long-term channel would invalidate the bearish count and instead suggest that the bullish one is in place.
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