Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MATIC chalked a bullish wedge pattern.
- Open interest rates stagnated; CVD spot increased.
Polygon [MATIC] has been on a downtrend since mid-February, but a trend reversal could be imminent. The price action has chalked a falling wedge pattern – a typical bullish formation that could give bulls little hope.
How much are 1,10,100 MATICs worth today?
In the meantime, BTC defended the $25k support despite many betting against a sharp reversal after the Binance lawsuit. However, it retraced slightly after hitting $27.3k, dropping to $26k at press time.
MATIC – A reversal or trend continuation?
Source: MATIC/USDT on TradingView
After hitting the Q1 price peak of $1.568 in mid-February, MATIC has depreciated to <$1. At press time, MATIC’s price was $0.8036, just a few basis points from December lows of $0.7555.
The overall price action chalked a bullish falling wedge pattern (cyan), also known as a descending wedge. Notably, the price was edging to the tip of the wedge, making a breakout, especially an upside breakout, a possibility.
Such a likely bullish breakout could set MATIC to rally towards $1.568. However, bulls must clear roadblocks at $0.95 and $1.19 to push forward to the Q1 price ceiling.
On the bearish angle, a breakout on the downside could ease at the lower support levels at $0.7, $0.6 and $0.4. Notably, the trendline support aligns with the December low of $0.7555; sellers must clear it to extend more gains.
Meanwhile, the RSI hit the oversold zone while OBV declined since mid-February. It highlights increased selling pressure alongside muted demand.
OI stagnates; CVD spot improves
Source: Coinglass
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Like on the price charts, MATIC’s OI declined from mid-February (>$300 million) and has stagnated near $200 million in Q2. This underscores the bearish sentiment on the futures market.
The CVD spot, which tracks buying and selling volumes over time, also declined in the same period. However, there was a sharp increase in the past few days, signaling building buying pressure.
Source: Coinalyze
