MATIC’s recovery falters at October 2022 lows, what’s next?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MATIC faced resistance from the October 2022 low of $0.710.
- Buying volume and Open Interest rates eased slightly.
Several altcoins posted remarkable recoveries as Q2 bearish sentiment abated after Bitcoin [BTC] reclaimed $31k. Memecoins like Pepe [PEPE] posted over 60% gains in the past seven days, as per CoinMarketCap, underscoring the prevailing bullish sentiment.
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Similarly, Polygon [MATIC] posted over 10% gains over the same period.
However, MATIC saw a short pullback at the time of writing after faltering at the October 2022 low of $0.7102. Also, BTC dropped below $31k, which could explain MATIC’s short-term pullback.
Can bulls smash the roadblock?
MATIC mounted above the recent lower high inflicted on 13 June, flipping the H4 structure bullish. However, the recovery faltered at the October low of $0.71.
The RSI (Relative Strength Index) has retreated from the overbought but eased at the 50-mark – buying pressure eased, but selling pressure wasn’t strong enough. Similarly, capital inflows were still impressive, as shown by the CMF (Chaikin Money Flow) above zero.
Taken together, an attempt to smash the roadblock of $0.71 was still feasible, especially if BTC remains bullish. A retest on the breakout level at $0.71 could offer new buying opportunities targeting the $0.90 – $0.95 region.
However, bulls must clear another obstacle at $0.763 to gain an edge.
Conversely, bulls’ efforts could be undermined if the short-term support of $0.6530 cracks. Such a move could expose MATIC to a likely devaluation at the $0.51 price level.
Buying volumes eased as Open Interest rates declined
How much are 1,10,100 MATICs worth today?
The 1-hour chart indicates CVD (Cumulative Volume Delta) rose from 19 June but eased after hitting the October low. It shows buying volumes eased after MATIC hit the $0.71 roadblock.
Similarly, the Open Interest retreated southwards, declining from about $124 million to nearly $110 million at press time. It denotes the increasingly bearish sentiment in the futures market. A retest of short-term support of $0.6530 could also offer another buying chance.