MATIC – Experiencing a sharp correction

MATIC – Experiencing a sharp correction

MATIC has logged a sharp decline from the fresh 6-month high of 2.59 posted a few days ago, dipping below several crucial support barriers. That said, the positively aligned long-term simple moving averages continue to endorse the positive structure.

Momentum oscillators are suggesting that the current correction could persist for a bit longer. The RSI is sustaining a negative bearing and just slipped into the negative region, while the MACD has been losing strength and recently crossed below its signal line.

Furthermore, the recent dip below the 38.2% Fibonacci retracement level of the July-December uptrend at 1.82 could further boost selling pressures, paving the way towards the 50.0% Fibonacci level at 1.60, and the overlapping 100-day simple moving average. While a decisive drop below the November 18^th low of 1.44 will dismantle the current bullish structure.

If buyers manage to seize back the reins, they may face early constraints from the 23.6% Fibonacci level at 2.11 and the nearby October 29^th inside swing high. By successfully conquering these obstacles, bulls may propel the price higher for a fresh test of the 8^th of December high at 2.57 before moving to challenge the all-time high recorded at 2.82.