MATIC's Price Trend: Potential Correction Ahead

MATIC's Positive Weekly Performance

MATIC has recently shown a strong performance, continuing its positive weekly streak by recording a 24-hour gain. The altcoin's price rose over 3% to $0.9204, contributing to a 6.12% increase over the week. This upward momentum was notable as MATIC outperformed major cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) in the past day, gaining 1.92% and 1.90% against them, respectively.

Price Analysis and Key Levels

Despite this strong performance, MATIC's price faced a minor retracement from its daily high of $0.9514, with a 24-hour low at $0.8935. Currently, MATIC rests on a critical trend line on the 4-hour chart. A drop below this trend line could see the price fall to a significant support level at $0.89672. Conversely, maintaining above the trend line could allow MATIC to transform the resistance at $0.94186 into a new support level.

Technical Indicators Signal Potential Correction

Traders should be cautious as technical indicators suggest a possible correction. The Relative Strength Index (RSI) is nearing a bearish crossover, with the RSI line approaching below the RSI SMA line. If this crossover occurs within the next 24 hours, MATIC risks breaching the $0.89672 support, potentially targeting $0.84395 if no other supports hold.

Conclusion

While MATIC has displayed impressive gains, traders should remain vigilant of the technical indicators pointing towards a potential correction. Monitoring key support and resistance levels will be crucial in navigating the upcoming price movements.