MATIC rejected at $0.60: How low can the depreciation go?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MATIC lost hold of $0.6 as of press time.
- There were significant limit buy orders around $0.50.
Polygon’s [MATIC] move to remain attractive to users in the Ethereum [ETH] ecosystem hasn’t relieved it from Bitcoin’s [BTC] price swings. BTC’s foray on the $28k tipped MATIC to grace $0.6 but reversed after king coin retreated to $26k.
How much are 1,10,100 MATICs worth today?
A similar retracement below $0.6 in August saw MATIC hit $0.53 before rebounding towards $0.65. In the meantime, BTC eased to range-lows and critical support around $25.8k.
Will MATIC repeat the August price action?
In the second half of August, MATIC dropped below the H12 bullish order block (OB) of $0.558 – $0.595 (cyan). Besides, the price area is a larger zone of a weekly bullish OB of $0.418 – $0.597 (white).
Although the price didn’t go below the weekly bullish OB, the slight plunge below the H12 bullish OB (white) was followed by a narrow consolidation and an over 16% upswing.
BTC could enter a narrow consolidation before chalking a clear direction from Monday (4 September). So, MATIC could follow suit and consolidate above $0.50 before attempting an upside toward the 50-EMA (Exponential Moving Average) of $0.60 or $0.65.
Key chart indicators printed negative readings, which could cement sellers’ short-term control. For example, the RSI was in the lower range while the CMF struggled to move beyond zero level. The above denotes elevated sell pressure and muted capital inflows.
In addition, the OBV dipped slightly, further indicating eased demand for MATIC.
Considerable buy limit orders placed towards $0.50
Read Polygon’s [MATIC] Price Prediction 2023-24
On Mobchart, an order flow tracking platform, MATIC had significant buy limit orders between $0.50 – $0.52 on Binance Exchange’s 4-hour timeframe as of press time. That means sellers could face difficulty pushing MATIC below $0.50 in the next few days.
However, a possible reversal to the upside could be invalidated if BTC breaks below $25k. So, traders should track BTC’s movement and order flow for better-optimized set-ups.