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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


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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/
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