MATIC – A long opportunity may be incoming
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
From mid-May, Polygon [MATIC] has fronted a spirited recovery, rising from $0.8177 to over $0.95. However, the $0.95 price level was a sticky resistance and support level in late January to April.
A price rejection at the sticky resistance level has set MATIC to retrace to another key short-term price level. MATIC could reverse recent losses if this key price level holds and Bitcoin [BTC] surges above $27k.
Can MATIC rebound and retest $0.95
The price action from mid-May chalked an ascending channel (white). The $0.864 – $0.878 (cyan) level has seen a considerable price reaction, making it a key support/resistance level.
At press time, MATIC retraced to the range low after facing another rejection of the mid-range near $0.92. Notably, the $0.864 – $0.878 (cyan) support offered another long opportunity targeting $0.95 on 24 May.
MATIC could rebound and rally towards $0.95 again, especially if BTC surges to $27.8k or $28k. If that’s the case, buying at the press-time level could offer a good risk ratio in the mid-range or range high. In addition, a close above $0.95 could offer extra gains if MATIC retests $1.
A break below $0.864 – $0.878 will be an invalidation. Such a downswing could set MATIC to drop to $0.85 or $0.82.
The RSI wavered below the 50-mark, denoting competing buying and selling pressure. But OBV dipped, highlighting limited demand at press time.
How much are 1,10,100 MATICs worth today?
According to Coinglass, over $695k MATIC long positions were wrecked in the past 4-hours as of press time. On the contrary, less than $100 worth of short positions were liquidated in the same period.
Although this denotes a budding bearish pressure, the sentiment could change during the NY opening and if BTC reverses recent losses.