Connect with us
Active Currencies 14437
Market Cap $2,624,013,348,516.30
Bitcoin Share 50.19%
24h Market Cap Change $-4.10

Polygon [MATIC] approaches range lows – what traders can expect next

2min Read

MATIC’s bullish order block at key support level continues to slow down bearish momentum.

Polygon [MATIC] approaches range lows - what traders can expect next

Share this article

  • MATIC’s market structure on the daily timeframe remained bearish.
  • Indecision between buyers and sellers kept prices stuck in a range.

Polygon [MATIC] began the year as one of the best-performing cryptocurrencies. It posted a 108.9% gain between 1 January and 18 February. However, a huge correction flipped its market structure from bullish to bearish.


How much are 1,10,100 MATICs worth today?


Prices traded sideways between mid-March to mid-April before BTC’s correction sent MATIC on another downward spiral. 

MATIC stuck in a tight spot

Source: MATIC/USDT on Trading View

The indecision between buyers and sellers has confined MATIC to a tight range for the past three weeks. It has traded between the $0.950 support level and $1.028 resistance level on the four-hour timeframe. 

The bullish order block’s confluence with the $0.950 support level just below it has served as a rallying point for bulls. Price has bounced off the support level four times in quick succession to stem the selling pressure.

However, the RSI and CMF both pointed to weakening buying pressure at that level. The RSI has stayed under neutral 50 over a two-day period while the CMF was at -0.15 as of press time.

A four-hour candle close below the $0.950 support level could lead to a bearish breakout for MATIC with $0.835 as the target for bears.


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


Could a bullish reversal be on the horizon?

A look at key on-chain metrics suggested MATIC buyers might not be giving up yet. Data from Santiment showed a decline in active addresses and an increase in the total number of holders. This showed that an accumulation could be ongoing for Polygon’s native currency. 

Source: Santiment

Funding rates have been consistently positive over the past 14 days, which showed that demand existed for MATIC, even at press time. The spot CVD also experienced an uptick. 

A bullish reversal will be hugely dependent on the confluence of the bullish order block and support level at $0.950 holding out once again. 

Source: Coinalyze

Share

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.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.