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MATIC bulls can hope for a trend reversal if…

2min Read

MATIC prices have been on a downward spiral since February, but there could be a reversal if BTC doesn’t see more losses in the next few days/weeks.

MATIC bulls could be hopeful of a trend reversal if...

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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 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

Is your portfolio green? Check out MATIC Profit Calculator

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


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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