Analysis
MATIC reverses September losses — Are more gains likely?
MATIC consolidated gains above $0.55 in the past two days. If the range-formation extends, buyers can re-enter at these levels.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- MATIC reversed September losses after hitting $0.5997.
- Futures market demand improved in the past week.
Polygon [MATIC] buyers have been exploiting the previous range-high near $0.55 as a market re-entry point since 2 October. Although the roadblock of $0.5709 – $0.5884 (red) temporarily derailed further upside on 3 October, bulls were determined to crack it at press time.
Read Polygon’s [MATIC] Price Prediction 2023-24
MATIC’s negative signals at the end of September prompted a bearish bias in the previous
price prediction. But the buyers regained control and an extended recovery tip MATIC to recover September losses.Can bulls extend the recovery?
Source: MATIC/USDT on TradingView
The rally at the end of September inflicted a bullish breakout and retested the range-high of $0.544 as a support. The range-high had a confluence with an invalidated H12 bearish OB of $0.5347 – $0.5496 (cyan).
Buyers exploited the confluence area as re-entry for profit-taking at the overhead target of $0.5709 – $0.5884 (red). If another price reversal occurs at the overhead roadblock, another buying opportunity could present itself at the range-high.
If so, such a move could present a potential gain of +4% to buyers.
But a drop below the range-high will invalidate the bullish bias, especially if BTC posts extra losses in the next few hours.
However, price indicators were positive and didn’t signal such a massive drop was at hand at press time. The Relative Strength Index (RSI) and On-Balance Volume (OBV) were positive. This indicated buying pressure and Spot market demand improved in the past few days.
MATIC’s Futures market demand recovered
Source: Coinglass
The rising Open Interest (OI) since late September indicated the Futures market demand for MATIC recovered over the same period. Notably, the metric jumped to >$130 million at press time, a level last seen in August.
How much are 1,10,100 MATICs worth today?
But one hour before press time, more long positions were wrecked, as indicated by liquidation data. Although this indicated a likely reversal, tracking BTC’s movement could help mitigate against risks.
