MATIC’s price is battling its first death cross in over a year, a potential bearish MACD, and a below-par daily RSI. Conflicting data among the whales and community members suggest that the price is delicately poised at a major support level. Should the broader market remain unchanged over the next 24-48 hours, MATIC could be in store for another correction. MATIC traded at $1.48, down by 1.2% over the last 24 hours at the time of writing.
MATIC Daily Chart
Bullish and bearish arguments were both possible through a quick look at the MATIC daily chart. The price was trading at major support of $1.30-$1.43 – a region that has triggered four rallies since October 2021. Top Ethereum whales were also purchasing MATIC at its current price level, with the alt featuring among the top 10 purchased coins over the last 24 hours. Normally, whale accumulation is perceived as a positive sign and the same can trigger major price hikes. However, the situation was not so straightforward for MATIC.
The altcoin was still reeling from a death cross that occurred on 22 February. A death cross is a technical pattern that appears when the daily 20-SMA (red) crosses below the daily 200-SMA (green). The unwanted development signifies a strengthening bearish trend. Other indicators represented some imminent dangers. The daily RSI has held below 45 since 20 February as sellers have been the more dominant force. the MACD was also on the edge of a bearish crossover, inviting potentially new short setups.
External Developments and Social Standing
Before getting deeper into price action, it’s important to understand where the current sentiment lay for MATIC. External developments have carried on well in March so far. Parentships with play-to-earn gaming platforms Arcade and Poriverse gained traction as the project looked to extend its blockchain gaming footprint. Despite the achievements, MATIC’s social score remained low. As per LunarCrush, MATIC’s weekly social volume and dominance declined by 19% and 34%, receptively, suggesting that the partnerships did not strike a chord with the community members. Furthermore, the daily bearish sentiment score bumped up by 35%. The data is tabulated through bearish mentions on MATIC across social media platforms.
Whale purchases alone can fall short of triggering a price rally. The same needs to be backed by retail traders as well. For the moment, the disparity between the two groups sat up favorably for bearish traders. Hence, shorting MATIC was a more reasonable call but the same had to be followed by a tight stop loss.
Investors can choose to short MATIC once the price declines below $1.20. Take-profit can be set at the next ideal defense present at $1.00 Stop-loss can be maintained at $1.50, slightly above the 20-SMA (red). The hypothetical trade setup carried a risk/reward ratio of 0.67.