Analysis
MATIC set to trend higher again after the retest of this former resistance level
Posted:
Journalist
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MATIC saw a shift in structure and momentum in favor of the bears
- This shift could be reversed over the next few days after a retest of a higher timeframe level of significance
Polygon [MATIC] saw a breakout past the highs of a range that was almost two months old. The MATIC token was in the process of being replaced with the POL token with added functionalities. All MATIC tokens will be converted to POL in a 1:1 ratio.
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A previous price report of MATIC by AMBCrypto highlighted the $0.6-$0.61 as an attractive pocket of liquidity for the bulls. Has the rejection from the $0.65 mark changed the bullish bias of MATIC?
The market structure saw a shift toward bearish after the recent drop below $0.62
Source: MATIC/USDT on TradingView
The four-hour market structure had been bullish, with the most recent higher low at $0.614. A few hours before press time, MATIC prices dived lower and signaled short-term bearish intent. In the $0.57-$0.59 sat a twelve-hour bullish breaker block.
This region had confluence with the range high (yellow) at $0.589. Therefore, a retest of the $0.59-$0.6 would offer an ideal buying opportunity targeting $0.65 or higher. The On-Balance Volume (OBV) saw an uptick over the past week to reflect increased buying pressure.
On the other hand, the Relative Strength Index (RSI) agreed with the market structure of MATIC and dipped beneath neutral 50. This was an early hint that momentum began to shift in bearish favor.
The past 48 hours saw bearish sentiment reinforced
Source: Coinalyze
The spot Cumulative Volume Delta (CVD) has trended downward since 24 October. MATIC prices also fell from $0.65 to $0.609, and the Open Interest (OI) saw a decline worth $5 million. The falling OI and prices showcased short-term bearish sentiment.
How much are 1, 10, or 100 MATIC worth today?
Combined with the spot CVD, it was reasonable to expect a deeper retracement. This could take the price back to the $0.57-$0.59 breaker block over the weekend.
