MAGIC Coin Bounces off Key Support Following a Bullish Upsurge
- The MAGIC coin bounced off the crucial $1.4 support to correct higher
- The digital asset had been trading within a tight range between $1.2 and $1.4.
- The MAGIC/USD pair has formed a cup-and-handle pattern on the daily charts.
MAGIC token price analysis reveals the altcoin market has experienced some buying activity pushing the prices from a low of $1.50 to the current trading price of 1.65. At the time of writing, the token is up by 3.34% in the last 24 hours while its monthly price change is +9.17% and its market cap stands at $94,062,531.
MAGIC token’s price action on the daily chart indicates the token opened the daily trading charts on a bullish note, hitting an intra-day high of $1.62, before correcting lower at $1.5. The token’s price then bounced off the crucial $1.4 support to start a rally higher, and it is currently trading above the $1.5 handle with some bullish momentum.
If the bulls manage to break and sustain above the current resistance levels of $1.5, the MAGIC/USD pair could see further upwards movement toward its next major resistance level at $1.62. The bulls are currently targeting a move above the $1.62 level to confirm a strong bullish trend in the near-term outlook.
On the downside, if the bulls fail to hold above $1.5, then the price could see some bearish pressure and may start a corrective move toward its recent lows of $1.4. MAGIC/USD technical analysis on a daily chart indicates the token has formed a cup-and-handle pattern, which is considered a bullish sign in technical analysis. This indicates the token could further rally higher in the near term if the bulls manage to hold above the $1.5 level.
The technicals indicate the MAGIC token is trading above the 20-day EMA and 50-day EMA, which is a sign of bullish momentum. The token’s relative strength index (RSI) however is below 50, which could be a sign of bearishness in the near term.
MAGIC/USD 1-day price chart:TradingView
The Moving Average Convergence Divergence (MACD) is below the red signal line, which could be a sign of bearish momentum in the near term. A bullish crossover and a move above the red signal line could indicate further upside for the token.
The 4-hour chart shows some buyers are gathering at the $1.50 support level and the bulls are trying to defend it. A break above the $1.5 handle could see further upside potential for the MAGIC tokens in the near term, while a drop below the $1.4 support could see some bearish pressure on the price in the short term.
The momentum oscillators are starting to show some bullishness on the 4-hour chart as the RSI is starting to rise toward the 70 mark, which could indicate a trend reversal in the near term. The MACD is also starting to move above the red signal line, which could also be an indication of further upside potential for the token.
MAGIC/USD 4-hour chart: TradingView
Overall, the MAGIC coin has seen an impressive price surge in recent hours and it appears that the bulls are attempting to hold above $1.5 in order to push the price higher. The technical indicators are starting to show some bullish momentum, which could see further upside potential for the token in the near term.
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