MATIC’s price might soon welcome a move north owing to this prediction
The $0.87-$0.89 zone presented an attractive pool of liquidity, but where will MATIC go later?
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
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
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.
