Connect with us
Active Currencies 14791
Market Cap $2,469,545,528,576.10
Bitcoin Share 51.84%
24h Market Cap Change $-2.13

Polygon’s [MATIC] short-term prediction for noise traders, and market timers

2min Read
Polygon's [MATIC] short-term prediction for noise traders, and market timers

Share this article

  • MATIC was in a bearish market structure.
  • It could break below $0.7652.
  • A break above $0.7781 would invalidate the above forecast.

Since 28 December, Polygon [MATIC] has experienced several price rejections at $0.7652. In addition, Bitcoin’s [BTC] recent sideways market structure has also prevented the altcoin market from moving higher.

MATIC has since fallen and broken through several support levels, as BTC’s trading range has undermined trading volume. At press time, MATIC was trading at $0.7675 and was on the verge of falling below $0.7652.


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


MATIC’s freefall: Will $0.7652 hold?

Source: MATIC/USDT on TradingView

MATIC’s recent freefall has broken a few supports, including the immediate supports at $0.7827, $0.7755, and $0.7736. However, technical indicators suggested that it could plummet further.

In particular, the Relative Strength Index fell from the upper ranges into oversold territory. This suggested that buying pressure declined and selling pressure increased.

The on-balance volume (OBV) also declined steadily, suggesting that the decline in trading volume contributed to easing buying pressure. In addition, Chaikin Money Flow (CMF) was below zero, thus reinforcing that the bears had more influence on the market at the time of the press release.

Therefore, MATIC could break below $0.7652 and find new support at $0.7571 or $0.7524 if the selling pressure increased in the next few hours or days, starting from the time of writing. These levels can serve as targets for short-selling.

They can also serve as discounted buying opportunities, as MATIC was in an oversold area, one of many conditions that can influence a price reversal.

However, a break above $0.7781 would invalidate the above trend. But the bulls need to overcome the immediate hurdles at $0.7755 and $0.7736 to gain leverage.

Investors should therefore look for the CMF to cross above the zero line and the RSI rejection in the oversold zone for a price reversal. This would be a clear signal to close the short positions.

MATIC recorded a bearish sentiment as the number of active addresses remained low

Source: Santiment

According to Santiment, MATIC’s number of active addresses remained almost constant in the last hour at press time. In addition, weighted sentiment fell slightly into negative territory, indicating a bearish sentiment.

Therefore, a stagnant number of active addresses would undermine buying pressure, and bearish sentiment would further increase selling pressure.


How many MATICs can you get for $1?


The supply distribution also showed that all supplier categories increased their holdings except for the two groups (100K-1M) and (1M-10M) coin holders. Therefore, the two whale categories were responsible for the selling pressure at press time.

Source: Santiment

However, the whale category (100 million to one billion coins), with a supply control of over 50%, also increased its holdings. Was this an indication of a possible trend reversal?

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.