MATIC: Will bullish advances for $0.7414 resistance be successful?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MATIC hovered below key resistance level, as it looked to accelerate recent gains.
- Short positions worth $964.37k were liquidated over the past 24 hours.
Gains of 9.7% over the past 24 hours took Polygon [MATIC] to within touching distance of the $0.7414 resistance level. MATIC’s sluggish reversal from the July 2022 low of $0.5274 confined the altcoin to a range with neither bulls nor bears gaining the upper hand.
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This bullish rebound will be the first retest of the $0.7414 level after the price broke below the level on 9 June. Can bulls flip the level and push on for more gains?
Bullish momentum rising slowly
Due to its bearish market structure, MATIC’s recovery has been met with stiff resistance. However, bulls have made considerable progress.
Since the Moving Average Convergence Divergence (MACD) indicator posted a bullish crossover on 16 June, MATIC has been on an uptrend. The Relative Strength Indicator (RSI) also climbed out of the oversold zone and stood at 65, as of press time. This highlighted the growing buying pressure for MATIC.
Bulls need to break the local low at the $0.7414 resistance level to register significant gains. A break and retest of this level could offer buying opportunities to $0.8355 and $0.9504.
On the flip side, a price rejection at the $0.7414 level could increase the selling pressure and see MATIC sink to $0.6000 or $0.5500
Buyers spurred by bullish reaction in futures markets
MATIC short positions suffered huge losses in the futures market over the past 24 hours, according to Coinglass. This was because $964.37k worth of short positions were liquidated out of a total of $1.19 million, accounting for 81% of the total liquidations within the period.
How much are 1,10,100 MATICs worth today?
Longs seized the initiative and took a 51.11% advantage on the exchange long/short ratio. As such, the connection between the price action and the futures market points to significant bullish action for MATIC.