MATIC: Sellers benefit from sluggish reversal
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MATIC could not push past the intense selling pressure.
- Sentiment remained bearish in the futures market.
The short-term prospects for Polygon [MATIC] continued to look grim as concerns over its classification as a security by the US Securities and Exchange Commission impacted its price chart.
Read Polygon’s [MATIC] Price Prediction 2023-24
With Bitcoin [BTC] not making any significant gains after reclaiming the $26K price zone, any reversal opportunities could be impeded for MATIC.
Bearish momentum suppresses bullish rally
MATIC’s descent to the July 2022 level of $0.5274 marked a year-low for the altcoin. Sellers took advantage of the strong bearish pressure since mid-April and the uncertainty around MATIC to inflict massive losses.
Despite MATIC rebounding from $0.5274 to $0.6500 between 10 June and 13 June, the selling pressure has hampered a sustained bullish rally.
The RSI remained under neutral 50 and the OBV declined by 96 million over the past two days. Both indicators highlighted the significant bearish sentiment in the market.
With MATIC trading at $0.5988, a retest of the $0.5274 support level could see more aggressive selling, pushing MATIC toward the $0.5000 price zone. Conversely, an uptick in volume could trigger a bullish pullback with $0.6500 – $0.7000 serving as targets for bulls.
How much are 1,10,100 MATICs worth today?
Spot CVD reinforced possibility of further dips
A look at the Open Interest (OI) from Coinalyze on the four-hour timeframe showed a huge decline on 10 June. It experienced a slight uptick on 16 June before declining again. It showed the hesitation by market speculators to open new positions until clarity emerged over regulatory concerns.
Similarly, the Spot CVD, which tracks trading volumes over time, maintained a steep decline. This hinted that the selling volume far outweighed the buying one, highlighting the lack of demand for MATIC in the futures market.