MATIC price has been under pressure in the past week, as the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and Coinbase, accusing them of illegally offering securities in the form of MATIC tokens. The SEC claims that MATIC is not a utility token, but a security that requires registration and compliance with federal laws.
The lawsuit has triggered a sell-off in the MATIC market, as investors fear legal repercussions and regulatory uncertainty. MATIC price dropped by more than 20% from its weekly high of $0.88 on September 10 to its weekly low of $0.69 on September 14. The token also lost its rank as the ninth-largest cryptocurrency by market capitalization, falling to the 11th spot.
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MATIC Price Weekly Analysis
The weekly chart shows that MATIC price is still in a downtrend, as it remains below the 50-week simple moving average (SMA) and the descending trendline that connects the lower highs since May. The relative strength index (RSI) is also below 50, indicating that the sellers have the upper hand.
However, MATIC price has also found some support at the $0.65 level, which coincides with the 200-week SMA and the 61.8% Fibonacci retracement level of the rally from March 2020 to May 2021. This support zone has been tested several times in August and September, but has not been breached decisively.
Therefore, MATIC price is currently in a consolidation phase, as it awaits a catalyst to trigger a decisive move in either direction. A weekly close above $0.7 could signal a bullish reversal, while a weekly close below $0.65 could confirm a bearish continuation.
MATIC Price Daily Chart
The daily chart shows that MATIC price has been forming a symmetrical triangle pattern since mid-August, which is a sign of indecision and uncertainty in the market. The symmetrical triangle has a flat resistance at $0.7 and an ascending support at $0.66, as of September 16.
The volume has been declining as the triangle narrows, suggesting that a breakout is imminent. The symmetrical triangle has a measured target of $0.8 on the upside and $0.56 on the downside, depending on the direction of the breakout.
$MATIC On H4 timeframe level the price action of $MATIC formed out Symmetrical Triangle pattern level where the price action is respecting its Horizontal Resistance level.
After an breakout level we can expect some further upward movement.
The RSI is hovering around 50, indicating a balance between buyers and sellers. The 50-day SMA is also flat, reflecting the lack of momentum in either direction.
MATIC Price Outlook
MATIC price is facing a critical moment, as it approaches the apex of the symmetrical triangle pattern. A breakout from this pattern could determine the next major trend for the token.
The bulls need to push MATIC price above $0.7 and hold it there on a daily basis, to confirm a bullish breakout from the triangle and challenge the next resistance at $0.75.
The bears need to drag MATIC price below $0.66 and hold it there on a daily basis, to confirm a bearish breakdown from the triangle and target the next support at $0.6.
MATIC News Roundup
Some of the latest news stories that could impact MATIC price are:
- Polygon (MATIC) reveals game-changing upgrades, aims to become world’s fastest blockchain: Polygon has announced its roadmap for Polygon 2.0, which includes three proposals to enhance its scalability, security, and interoperability. The proposals are: Polygon SDK v2, zkEVM Rollups, and Polygon Avail.
- Binance NFT cuts Polygon from its roster, should you worry? Binance NFT Marketplace has announced that it will end its support for Polygon network integration and NFT staking program on September 30. The move is part of its effort to streamline its services and optimize user experience.
- Hackers transfer BNB and MATIC amid $41m Stake exploit: Stake.com, an online gaming platform that supports cryptocurrencies, has suffered a security breach that resulted in the loss of over $41 million worth of crypto assets, including BNB and MATIC. The hackers have transferred some of the stolen funds to Binance and other exchanges.
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