From late July to mid-August, the MATIC/USDT pair reverberated in a rising wedge pattern. After a protracted recovery rally, this bearish pattern signalled that the positive momentum was waning. In addition, the coin price reversed from the $1, 200-day EMA, and resistance trendline resistance on August 15th, which started a bear cycle within the wedge shape.
Since last week, the MATIC price has decreased 26%. The MATIC price has fallen to 0.382 Fibonacci retracement levels as a result of the correction phase. The MATIC's intraday trading volume is $553.2 Million, which is a 20.2% loss.
The MATIC price gave a bearish breakdown from the pattern's support trendline during the crypto market correction emotion.
The recent US Fed news indicating a 0.75% interest rate hike in September intensified selling momentum, which was in line with the pattern completion. The prices fell by 18% as a result of the post-breakdown recovery, reaching local support around $0.762.
This level of support stopped the current decline phase and caused the MATIC price to move higher, to where it is now trading at $0.8, up 4.35%. The bullish candle, however, is supported by modest volume activity, which shows a lack of bullish commitment.
Therefore, an anticipated positive reversal from the $0.762 level may result in a brief rally to calm the frantic selling. The relief rally is also likely to run into the 20-day EMA and $0.875 resistance. On the other hand, the buyers will have another chance to recoup $1 if the relief rally results in a candle closing above $0.875.
A general bear trend is shown by the MATIC price's reversion from the 200-day EMA slope. The coin price's plunge below the 20-day provides sellers with an additional advantage.
Increasing selling pressure in the market is indicated by a large spread between the VI+ and VI- slopes following a bearish crossover, according to the vortex indicator. The indicator supports the correction notion as it shows no signs of weakness as yet.
Levels of support and resistance are $0.761 and $0.672, respectively.
