If MATIC breaks through this resistance level, it may offer a rally.

The MATIC price has begun to slow its price correction in recent trading sessions. The coin has dropped by more than 5% in the last 24 hours. The altcoin lost 18% of its market value over the last week, indicating a bearish trend.

Despite the fact that the altcoin is losing value, it has been attempting to recoup those losses in recent trading sessions. MATIC’s technical outlook was bearish, as demand for the altcoin continued to fall on the daily chart.

Accumulation remained low as buying strength remained bearish. MATIC has currently secured $1.14 as its local support line. If the altcoin falls below $1.14, it will fall into the hands of the bears, making the altcoin’s recovery more difficult.

Other altcoins have been losing value significantly as Bitcoin has lost value over the last 24 hours and has moved closer to the $23,000 price mark. Broader market strength is still required for the altcoin to break through its current price ceiling.

MATIC Price Analysis: One-Day Chart

At the time of writing, the altcoin was trading for $1.26. MATIC was trading near its $1.14 local support line; a drop below that level will bring the coin down to $1.09. The altcoin’s overhead resistance was the 38.2% Fibonacci retracement level.

A break above the aforementioned level could propel MATIC to the 61.8% Fibonacci level, resulting in a 9% rally in the coming trading sessions. The amount of MATIC traded in the previous session was red, indicating that sellers were taking control of the market.

Technical Analysis

Over the last few days, the altcoin has struggled with low buying strength. The Relative Strength Index fell below 50, indicating that the coin was being dominated by sellers in the market.

On the same note, MATIC fell below the 20-Simple Moving Average line, indicating that the market’s price momentum was turning bearish as sellers drove the price.

Other technical indicators have sided with the bears as well. Moving Average Convergence Divergence indicates price momentum and trend reversals. The indicator generated red histograms that corresponded to sell signals on the chart.

Sell signals are frequently accompanied by a price drop before the price recovers. The Chaikin Money Flow model predicts capital inflows and outflows at a given point in time. As it passed through the half-line, the indicator indicated negative capital inflows. If the indicator is below the half-line, it means the altcoin has seen significant capital outflows.