Analysis
MATIC: Will bulls cave in to selling pressure?
MATIC continues to trade within a compact price range, as the selling pressure at the $0.6 price zone stands in the way of more bullish gains.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MATIC settled into a tight range, with bulls unable to scale the $0.6 hurdle.
- Buyers were still optimistic, with the Mean Coin Age continuing to trend upwards.
Polygon [MATIC] continued to trade within a compact price range, as the selling pressure at the $0.6 price zone stood in the way of sustained bullish gains.
Realistic or not, here’s MATIC’s market cap in BTC’s terms
An earlier report by AMBCrypto on MATIC’s price action highlighted the possibility of an uptrend, based on the strong bullish rally from $0.5. However, this move is yet to materialize, due to the selling pressure still present at the $0.6 price zone.
Dwindling bullish momentum could see MATIC maintain its bearish structure
Source: MATIC/USDT on Trading View
The RSI (Relative Strength Index) highlighted the drop in the buying pressure, as it moved from the upper level to the lower level on the 12H timeframe. This drop came after the price rejection at $0.58 within the compact trading range.
This loss of momentum by bulls could lead to a bearish breakout from the compact range, with a retest of the $0.5 support level looking likely in the short term.
As such, MATIC investors adopted a cautious approach. The CMF (Chaikin Money Flow) revealed significant capital outflows, as it moved into negative territory.
A sustained bullish move will require buyers to cross the $0.6 hurdle. This could in turn propel an influx of buying pressure to the $0.65 to $0.7 price zone.
On-chain metrics highlighted bulls’ optimism
Source: Santiment
How much are 1,10,100 MATICs worth today?
The sustained climb of the 90d Mean Coin Age suggested investors believed in a price reversal from the press time level. It underlined an accumulation of MATIC in anticipation of a price rise.
The short-term outlook for bulls was even better. The 30d Market Value to Realized Value (MVRV) showed that traders were sitting in slight unrealized profits. Together, they spotlighted the bullish prospects present for MATIC.
