MATIC Price Poised for 12% Drop By Month End, But There’s a Twist

On November 21st, the crypto market witnessed a sudden surge in selling pressure as the news spread about the CEO of the largest cryptocurrency exchange, Binance, Changpeng Zhao stepped down from the company. Along with the majority of major cryptocurrencies, the MATIC price has extended its correction and plunged to the current trading price of $0.762.

However, this correction is still above the safety net of the Fibonacci regression level indicating the MATIC price prediction is bullish in the Midterm.

Multiple Support Bolster Buyers for a Strong Rebound

Source – Tradingview

Amid the October and early November rally, the MATIC price has made significant growth as the price jumped from $0.52 to $0.983, registering a surge of 95.6%. Amid this rally, the coin price gave a decisive breakout from the downsloping trendline which has acted as a neckline resistance of the correction trend for nearly two years. 

While the breakout rally managed to push the coin to a high of $0.983, the buyers couldn’t sustain this level for long as market sentiment turned uncertain. In tandem with the formation of head-and-shoulder patterns, the MATIC price plunged 26% in the last 7 days. 

This downturn has recently breached the neckline support of the aforementioned pattern, paving the path of further downfall. With sustained selling, the price could plunge another 9-12% to retest the dual support of $0.7 and The aforementioned breach trendline

Technical indicators:

RSI Indicator: This daily RSI slope nosedive below the 50% midline indicates the selling momentum is active.

EMA indicator: A potential golden crossover between the 50-and-200-day EMA could assist buyers in recuperating the bullish momentum.  

Will MATIC Price Regain $1?

A bullish breakout from the long-coming resistance trendline projected a major shift in market sentiment and early signs of a trend reversal. After witnessing heavy supply pressure at this trendline before the breakout, the declining price is now approaching this level as a potential support. In addition, this level coinciding with the 50-200-day EMA and 61.8% Fibonacci retracement level creates a strong support zone for buyers. 

If the coin price manages to sustain above this support, the buyers could rebound strongly and re-challenge the $1 mark.