On December 12, the price of Magic increased by almost 80%. However, it is in the process of forming a long upper wick. Magic’s price may have hit a local top.
Magic Treasure is the native token of Metaverse, a decentralized non-fungible token (NFT) ecosystem for Metaverse projects. The MAGIC token is also used to manage ecosystem activities and is the only token used for marketplace trades. The three main products it is used in are Bridgeworld, The Beacon and Trove.
MAGIC price broke above a descending resistance line on December 3rd. Nevertheless, it accelerated its upward momentum only on 12 December. The rate of increase accelerated after the price bounced to the $0.48 horizontal zone, which previously provided resistance. On the same day, the price hit a high of $1.01, the highest since May, but well below its all-time high.
There are no bearish reversal signals as of now. The RSI is rising and has not generated any bearish divergence. However, MAGIC price is yet to close above the $0.92 resistance area. Doing so could propel the rate of increase towards the next resistance at $1.80. However, a rejection could trigger a decline towards $0.48.
Binance listing could help the growth. On December 12, the Binance exchange announced that it would list Magic in the Innovation Zone. As a result, it added three spot trading pairs to MAGIC; BTC, BUS and USDT pairs. Furthermore, Binance announced that BUSD and USDT pairs will also be available for margin trading. Hence, this positive Binance news has catalysed the ongoing rise.
Bullish and Bearish Approaches to Magic Price
There are two outlines for the direction of future movement.
The bearish one (black) indicates that the MAGIC price has just completed an ABC correction, with an exact 1:1 ratio of wave A:C. If true, the price will not break out of the current ascending parallel channel, but will instead decline towards its midline at $0.60.
The bullish count (white) shows that Magic price is caught in a new bullish impulse. If true, the price would continue to move towards the 1.61 Fibonacci extension to $1.37 before validating the resistance line of the channel as support.
A closer look at the trend since November shows that Magic’s price completed a five-wave upward movement. Wave five was extended into it, the same length as waves one and three.
As a result, the bearish count is likely higher as the uptrend seems to have come to an end. If this happens, MAGIC price will decline towards the $0.55 horizontal support area during the next 24-hours and eventually resume its upward momentum.
A breakout and re-claim from the long-term channel would invalidate the bearish count and instead suggest that bullish momentum is in place.
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