Polygon [MATIC]: Bulls successful at recovery – is a retest of $1.30 likely?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MATIC broke below its ascending channel pattern but was held in check.
- A retest of $1.30 could be likely if BTC reclaimed the $22.25k level.
Polygon [MATIC] successfully recovered but faced a hurdle at $1.2587. However, the bulls could overcome the hurdle if Bitcoin [BTC] reaches the 22.25k mark or more.
Investors are optimistic about the US CPI data to be released on 15 February. So far, however, the technology-heavy NASDAQ index has been performing better. Bitcoin was also up 1.7% in the last 24 hours, according to CoinMarketCap, which boosted the altcoin market.
Read Polygon’s [MATIC] Price Prediction 2023-24
Can the bulls bypass the hurdle?
Since the end of January 2023, the price action of MATIC has formed an ascending channel pattern, reflecting the extended rally over the past two weeks. After BTC fell to $21,000, the price dropped below the channel but was held in check by the support zone below $1.1683.
In the short term, bulls may target the $1.30 level to lock in their gains if MATIC breaks above the $1.2587 hurdle. However, risk-averse bulls should wait for confirmation to take entry positions. The market structure was bullish with a rising OBV (On Balance Volume), indicating that there was enough trading volume to drive the bulls.
Likewise, sellers could take short positions if MATIC falls below the 26-period EMA (Exponential Moving Average) of $1.2227. They can exit at the 100-period EMA of $1.2158 or at $1.1880.
MATIC saw a short-term accumulation, but holders’ profits declined
According to Santiment, MATIC saw a sharp increase in exchange outflows, indicating a short-term accumulation of the tokens. This trend corresponded with strong demand for MATIC, which led to the price reaching the $1.2587 mark. Further demand could push MATIC to overcome the $1.2587 level and head for the $1.3 mark.
How much are 1,10,100 MATICs worth today?
MATIC’s weighted sentiment also improved, showing that investors’ outlook for the asset has improved. But it was still negative, thus caution should be exercised.
However, among short-term holders (monthly holders), gains fell from 25% to about 5% at press time, as shown by the 30-day MVRV (Market Value to Realized Value) ratio. Hodler’s gains could improve if BTC surpasses $22.25k.