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Are MATIC bulls privy to new buying opportunity?

2min Read

Bulls have struggled to find any significant momentum with more setbacks likely after break of $0.7414 support.

Are MATIC bulls privy to new buying opportunity?

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • MATIC smashed the $0.7414 support level.
  • Funding rate reversed sharply into negative territory.

Polygon [MATIC] descended to new lows, with the price sinking to the July 2022 support level of $0.5274 before temporarily retracing to trade at $0.5466, as of press time.

Read Polygon’s [MATIC] Price Prediction 2023-24

The Securities Exchange Commission (SEC) lawsuit continues to loom large over major cryptocurrencies, with MATIC no exception to the bearish effects of the regulatory crackdown.

With Bitcoin [BTC] also experiencing a 4% drop to $25.6k within the past 24 hours, MATIC could be primed for more losses.

No end in sight for bulls as MATIC continues free fall

Source: MATIC/USDT on Trading View

A recent price report highlighted the possibility of a bullish reversal for MATIC from the $0.7500 price zone. However, price action over the past 48 hours saw MATIC smash through the $0.7414 support level, taking it to the July 2022 low of $0.5274.

The on-chart indicators suggested more price dips might be on the way. The Relative Strength Indicator (RSI) remained oversold and stood at 15, the lowest it has been in over a year. The Chaikin Money Flow (CMF) showed capital fleeing at massive rates with a reading of -0.20.

MATIC’s market structure and the press time sentiment in the crypto market favor more bearish activity. This could see bears clearing the $0.5274 support and subsequently targeting $0.3464.

Alternatively, a successful defense of the support level by bulls will invalidate the above thesis. This will present a much-needed opportunity to rally with bulls attempting to reclaim the $0.7414 level.

Negative funding rates highlighted shorts supremacy

Source: Coinalyze

A look at the funding rate data from Coinalyze on the 12-hour timeframe showed funding rates were consistently positive between 17 May and 9 June, as bulls defended the support level. However, the break of the support level saw the funding rate flip negative.

How much are 1,10,100 MATICs worth today?

This hinted at a massive decline in capital being deployed, with MATIC poised to continue along its bearish path.

The Spot CVD, which tracks trading volumes over time, also experienced a sharp decline after it had been on a gentle uptrend between 5 June and 9 June. This signaled waning buying pressure once again.


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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