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MATIC falls to key 50% Fib support level – Is a recovery likely?

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MATIC bulls could find buying opportunities hard to come by, except…

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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.

  • Price retracement saw MATIC drop to a critical price level. 
  • Short-term gains could be in the works for bulls, due to bulls’ advantage on long/short ratio.

Polygon [MATIC] failed in its attempt to flip its price action bullish on the higher timeframes. A 21% drop from the $0.8923 price level took MATIC to the 50% Fib level. The extension of the retracement saw MATIC erase its gains from the price pump on 13 July.


Read Polygon [MATIC] Price Prediction 2023-24


With Bitcoin [BTC] extending its range-bound formation between $29.2k to $29.5k, MATIC bulls could find buying opportunities hard to come by, unless the current level is defended successfully.

Can bulls rebound from the 50% Fib level?

MATIC price chart on dark background with green and red price bars

Source: MATIC/USDT on Trading View

Exploring MATIC’s price action considering the 12-hour timeframe revealed key price levels. The retracement from the $0.8923 level formed a higher low at the 23.6% Fib level ($0.8024) leading to a further price drop to the 50% Fib level ($0.7017).

A look southward showed that the 50% Fib level corresponded to a critical support level for bulls. Buyers rallied strongly from the level on 13 July with a 25% price pump. A retest of the level could produce similar results with the retracement easing at the 50% Fib level, as of press time.

While the Relative Strength Index (RSI) remained under the neutral 50, it registered a slight uptick to signal building demand. Also, the On Balance Volume (OBV) remained on an uptrend, despite a slight dip.

A strong bounce from the 50% Fib level would see bulls target take-profit levels at $0.8024 and $0.8923. However, if bulls can’t defend the level, sellers can break the higher low and target the $0.6568 (61.8% Fib) and $0.5927 (76.8% Fib) price levels.

Bulls capture a large portion of open contracts

Source: Coinglass


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


A look at the exchange long/short data from Coinglass on the four-hour timeframe revealed a 56.58% swing in favor of buyers. Such a large share of the open contracts for longs is likely to translate into short-term gains for MATIC. Thus, buyers can ride on the bullish sentiment in the futures market to register a strong rebound from the $0.7017 price level.

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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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