MATIC’s price might soon welcome a move north owing to this prediction

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• MATIC could see a bounce towards $0.9
• A breakout past the range highs is not yet in sight though

MATIC has noted heavy losses over the past three days. Its price dropped from $0.945 to $0.811, a move that measured 14.21%. It was trading near the middle of a range, a zone that usually offers an unfeasible risk-to-reward trade for both bulls and bears.

The short-term trend for Bitcoin [BTC] was pointing south after Monday’s losses, but the $42.3k-level could change this outlook. Previously, AMBCrypto had reported that MATIC witnessed a spike in network activity.

MATIC saw rejection at $0.93, just like it did a month ago

Source: MATIC/USDT on TradingView

The range formation in question was highlighted in yellow on the 4-hour MATIC price chart. It stretched from $0.72 to $0.962, with the mid-range level at $0.841. Over the past month, the mid-range level has been important. For instance, the early December rally saw multiple rejections from the $0.84-zone, finally overcoming it on 8 December.

At the time of writing, the four-hour market structure was bearish. Moreover, an H4 session close below the mid-range mark happened a few hours before press time. The RSI also slipped under the neutral 50-mark to signal a shift in momentum.

Together, they highlighted a bearish bias for the next 24-48 hours. The On-Balance Volume has receded over the past four days. In contrast, the Chaikin Money Flow continued to move above +0.05 to denote significant capital inflow to MATIC’s market.

Heavy red tilt of Liquidation Levels Delta could be important for traders

Source: Hyblock

The Cumulative Liq Levels Delta was deep in bearish territory over the past 24 hours. This was a reflection of the state of the market and showed that short-position liquidations outnumbered long positions. In other words, a move higher would hurt more market participants and could yield more liquidity, making a bounce in MATIC prices likely.

Read Polygon’s [MATIC] Price Prediction 2023-24

The $0.87-$0.89 zone had a huge number of liquidation levels and presented an attractive pool of liquidity, according to estimates from Hyblock. According to AMBCrypto, a move north to $0.9 is a likelihood in the coming hours, before a drop in prices. If Bitcoin manages to climb above $42.3k, the chances of a bearish reversal for MATIC would drastically fall in the short term.