MATIC retests June lows – Will bulls see a reprieve?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MATIC has been consolidating above $0.50 since 18 August.
- Open Interest rates stagnated, but funding rates were negative.
Polygon [MATIC] retreated to June lows, a key interest level for bulls, but there was no solid reversal on the cards yet. It posted an extra 8% loss on 17 August before entering a narrow price consolidation above $0.5 from 18 August.
Is your portfolio green? Check out the MATIC Profit Calculator
In the meantime, Bitcoin [BTC] was yet to reverse recent losses after dipping to $25.16k. At the time of writing, it struggled to stay above $26k, which could further delay a strong rebound for MATIC.
Is range extension likely?
The Relative Strength Index (RSI) retreated to the oversold zone and has stayed there since 17 August. It underscores the prevalent selling pressure that hadn’t abated yet at the time of writing.
Similarly, the Chaikin Money Flow (CMF) has been wavering below zero. The trend demonstrates a muted capital inflow, reinforcing the bearish bias on the spot market.
MATIC’s drop eased at the bullish order block (OB) above $0.50 (cyan). The level aligns with June lows, which saw successful rebounds upon retest. However, the weak BTC could delay a solid MATIC rebound.
So, sellers could push it lower to $0.509 if BTC records extra losses. But a liquidity hunt below $0.50 couldn’t be overruled.
Conversely, a solid rebound could tip bulls to target $0.65 or $0.70, especially if BTC recovers lost ground in the next few days.
How much are 1,10,100 MATICs worth today?
Funding rates were negative
On Coinalyze’s 1-hour chart, the Open Interest improved slightly and went sideways. It illustrates that demand improved slightly and then stagnated. The lack of solid demand in the derivatives market could delay the expected recovery.
The negative funding rates could further worsen the situation for those expecting to long the asset. The negative reading is a bearish signal. So, tracking BTC price movement is key before going long or short on the asset.