Matic Network was created with the goal of fixing the scalability issues that have plagued the Ethereum platform. It is implemented as a second layer above the latter’s blockchain.
Two of the biggest backers behind MATIC are Coinbase and Binance, the latter of which successfully held MATIC’s token sale in April 2019.
The MATIC price has been increasing since the beginning of August. According to @cryptomichnl, it is likely to reach the resistance area of 225 satoshis within the end of the month. While we agree with the price target, we think the price will trade inside a range throughout November before reaching it in December.
The cryptocurrency trader suggested that the MATIC price is likely to retrace towards support before resuming its upward movement.
Additionally, he outlined several resistance areas and several support areas that are likely to react to the price.
Let’s take a deep dive and analyze this possible movement.
MATIC Turns Resistance Into Support
The MATIC price did a textbook breakout movement on October 10.
After breaking out of the 165 satoshi resistance area, it reached a high of 210 satoshis before decreasing to validate the previous resistance area — which has now turned to support.
Once it reached it, it created a triple bottom — which is a bullish pattern — before initiating another upward movement.
Looking at the move in a short-term time-frame, we can see that the MATIC price just broke out above a descending resistance line.
Also, the triple bottom was combined with a bullish divergence in both the RSI and MACD — further increasing its significance.
Looking at the daily chart, we can see an ascending channel — the support line of which has been present since MATIC’s inception.
If the MATIC price continues trading within the confines of this channel, it should reach the 225 satoshi resistance area sometime in December.
Since the volume has been steadily decreasing and the RSI shows overbought values, we do not think the price will break out from this channel. Rather, it is likely to trade inside it until it eventually reaches the resistance area.
Do you think MATIC will reach the resistance area at 225 satoshis? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of TradingView, Shutterstock.