Analysis
Can MATIC’s consolidated gains extend beyond $0.60?
MATIC consolidates recent gains above $0.60. Will the short-term range formation extend?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MATIC consolidated recent rally gains above $0.60.
- Open Interest rates wavered, but funding rates remained positive.
The crypto market entered a short-range formation as Bitcoin [BTC] consolidated recent gains below $35k. For Polygon [MATIC], the consolidation occurred above $0.60. A key breaker block and a thin liquidity area prevented extreme bearish moves.
Read Polygon [MATIC] Price Prediction 2023-24
A previous MATIC’s price analysis on 23 October marked a retest of the previous range-high as a buying opportunity. Although MATIC rallied in the next few days, the pullback didn’t hit the range-high ($0.54), affecting some long positions.
What’s in store for traders this weekend?
Source: MATIC/USDT on TradingView
MATIC oscillated between $0.64 – $0.60 in the past few days, with a slight deviation to $0.66 on 24 October. The range-low was an alignment of liquidity on the chart of $0.61 (white) and a breaker block of $0.5935 – $0.6195 (cyan).
The RSI had a sideways movement just below the overbought zone. It meant that buying pressure fluctuated, and MATIC could extend the range into the weekend. If so, traders can exploit the range-high ($0.64) and range-low ($0.60) for gains.
A bullish breakout from the range could tip MATIC to grace $0.696. Alternatively, a spike in bearish bets could overwhelm the range-lows, dragging MATIC to $0.56 or $0.54. Notably, CMF retreated and dropped below zero and denoted massive capital outflows.
Open Interest rates fluctuated, but funding rates were positive
Source: Coinalyze
The recent neutral sentiment was confirmed by fluctuations in Open Interest (OI) rates. That meant that demand for MATIC in the derivative segment wavered in the past few days.
How much are 1,10,100 MATICs worth today?
However, it was worth noting that the short-sellers were extremely active at press time, as shown by the downward sloping CVD (Cumulative Volume Delta).
Although near-term bulls could be hopeful because of the positive funding rates, tracking BTC’s price action is crucial for gauging potential range breakout.
