Magic (MAGIC) Price Breaks Out of Key Resistance, What Next?
The price of Magic (MAGIC) decisively broke above a crucial resistance area. It is expected to rise even higher in the near future.
Crucial Resistance Area
The price of Magic (MAGIC) has been moving higher since forming a morning star pattern at the long-term support zone of $0.46 in mid-October 2023 (green ellipse). This is a bullish pattern, often leading to a trend reversal to the upside.
Indeed, the subsequent upward movement helped the price break above the crucial resistance zone at $0.78 last week, forming a bullish engulfing candle.
This indicates that the previous downtrend has ended, and the price may start a new uptrend.
The weekly RSI (Relative Strength Index) supports the potential for further upward movement as it is above 50 and trending upward.
Therefore, the MAGIC price may rise to the next crucial resistance zone at $1.08 in the near future. This figure corresponds to a 40.33% increase from the current price.
Despite the bullish outlook on the weekly timeframe, the daily chart suggests that the MAGIC price may experience further downside before continuing its upward trend. This is due to a bearish divergence in the RSI indicator.
This divergence occurs when the price rises, but momentum decreases, often followed by corrective phases.
Hence, the MAGIC price may correct towards the previous resistance zone at $0.73 before resuming its upward trajectory.
The most likely scenario suggests that the MAGIC price will continue to rise in the near future. The potential target for this movement is $1.08.
However, it may experience a correction to $0.73 before continuing the upward trend.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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