Matic Network [Matic] recently broke bullish at the beginning of this month after the launch of staking. However, the bulls got rejected at the highs around 250 satoshis (sats).
The volume of the sell-off in the past few hours has been significant as the price tests low at 199 sats.
The 50 and 200-Daily moving average (exponential) are acting as support levels at the moment. A break-down below it could retest the support of the previous channel. Nevertheless, a strong pullback is possible too. The price could form higher lows on longer time-frames if it moves up from here.
Post that, it has formed a parallel range between 175 and 218 sats. It broke above the channel on the staking news.
However, it is currently testing the top as support after a drop from the 250 sats mark. The 200-period moving average is acting as support at the moment.
The TD sequential count on the 4-hour and daily chart is still bearish. Nevertheless, bulls in Bitcoin has potential to pumps altcoins to astronomic highs. A break above the 250 sats opens room for a lot of upside for the altcoin.
Prominent derivatives and crypto trader, tweeted two days ago on the strong build up,
— TraderSZ (@trader1sz) February 6, 2020
However, the sudden drop seems to have invalidated his bullish predictions at the moment. While the break above the moving averages and channel opens room for a lot of upside. The massive volatility seems to suggest whales taking advantage of a squeeze.
As reported earlier, there are exchanges where one leverage trading is enabled as well. Moreover, more than 75% of the total supply still needs to be absorbed by the market in the long run. The total market capitalization is low and makes is susceptible to whale movements.
Chart analyst Andre tweeted on the massive drop criticizing the creators. He added that they take advantage of the fact that “there will always be #fomoers no matter what.”
Do you think that price would bounce back or fall back to it’s prior range? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com