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MATIC’s recovery faces headwinds – Can bulls prevail?

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

  • The bulls seem to have fronted a recovery on the charts
  • CVD (Cumulative Volume Delta) fell and could affect bulls’ efforts

While the bears have controlled MATIC’s market since mid-February, bulls only gained considerable leverage on 10 March. At the time, while the price action rebounded from $0.943, it has since faced stiff resistance levels. 

Read Polygon [MATIC] Price Prediction 2023-24

Additionally, Bitcoin [BTC] faced rejection around the $26K zone and dropped below $25K, further undermining the rest of the altcoin’s market recovery in the short-term. However, a retest of BTC’s latest highs could lead the altcoin market into a renewed recovery process. 

MATIC’s recovery at stake – Can bulls push forward?

Source: MATIC/USDT on TradingView

MATIC’s drop since mid-February was successfully stopped by the $.9427 support. The support was also crucial in January. Bulls cleared the hurdle at 200-period MA (Moving Average), the 20 EMA (Exponential Moving Average), and the $1.1654-resistance level. At press time, MATIC was struggling to bypass the obstacle at $1.23, partly due to BTC’s price fluctuations. 

Bulls could attempt to clear the $1.23 hurdle if BTC surges above $25K. A close above the hurdle could push the price towards the overhead resistance of $1.5723, especially if the obstacle at $1.34 is cleared too. 

On the contrary, BTC fluctuations could set MATIC into a consolidation range of $1.17 – $1.23 if 20 EMA remains steady. However, MATIC could sink to the new low of $0.943 if bears clear the obstacle at 200 MA ($1.0414). 

The Relative Strength Index (RSI) retreated from the oversold territory – Evidence of increased buying pressure over the past few days. However, the Average Directional Index (ADX) slope hadn’t moved north, indicating a weak uptrend direction which should caution bulls. 

Funding rate was positive, but CVD fell

Source: Coinalyze

According to the crypto-derivatives data platform Coinalyze, MATIC’s funding rates have been positive since March 13. It underlined increased demand for MATIC in the derivatives market, which helped bypass the $1.1654-hurdle. 

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However, the CVD (cumulative volume delta) fell with a negative slope, indicating sellers were gaining leverage in the market. If the CVD was flat, it would mean neither buyers nor sellers had absolute leverage. On the contrary, a positive slope and growth would suggest buyers’ greater market influence. The negative slope, therefore, could complicate the recovery.


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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