MATIC: Is a buying opportunity presenting itself?
MATIC's short-term pullback could present a buying opportunity if BTC doesn't post immediate losses.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MATIC exhibited a short-term pullback from the $0.58 hurdle.
- There were more buy-limit orders below $0.54, which could affect the pullback.
Polygon [MATIC] hit a familiar roadblock at $0.58 and tipped sellers to seek market re-entry. At press time, MATIC’s short-term retracement was headed to a crucial and previous range-high at $0.54.
Read Polygon’s [MATIC] Price Prediction 2023-24
A recent bearish inclination towards MATIC and the potential formation of new lows was invalidated after Bitcoin’s [BTC] sharp recovery.
BTC’s move above $30k saw MATIC rally +15%, jumping from the range-low of $0.50 to a sticky overhead hurdle of $0.58. Will the pullback at press time provide buyers a chance for market re-entry?
Can the pullback benefit bulls?
Since September, the sticky roadblock and H12 bearish order block of $0.571 – $0.588 (red) prevent MATIC from extra value appreciation. A fake move in early October near $0.60 was quickly reverted, dropping the altcoin to the previous range-high ($0.545) and range-low ($0.50).
The pullback could ease at the confluence of a breaker block and range high at $0.545. If so, a likely rebound could lead to a potential 4.8% gain if MATIC retests the overhead hurdle at $0.58. Such a move could make the range-high a great buying opportunity.
A crack below the range-high will invalidate the bullish bias and force bulls to attempt another re-entry at the range-low ($0.50).
Meanwhile, the RSI was in the overbought zone but exhibited a retreat. It meant that buying pressure eased in the past few hours before press time. Similarly, demand dropped slightly, as shown by the downtick on the OBV.
Massive buying interest existed below $0.56
How much are 1,10,100 MATICs worth today?
According to the order book analysis platform Mobchart, there were considerable buy limit orders at $0.55, $0.54, $0.52, and $0.50. The increased buying interest could ease further pullback.
On the sell side, $0.60 had massive sell limit orders. It could make a move beyond $0.60 challenging in the short term. It could act as an ideal take-profit in case of a rebound from the previous range-high. But a drop below the range-high ($0.54) will invalidate the long set-up.
