Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
- MATIC’s pullback hit July lows, clearing all current good points.
- However shopping for volumes elevated over the weekend.
The bearish sentiment from mid-July nonetheless looms in early August. Over this era, Bitcoin’s [BTC] worth motion has weakened, exposing most altcoins to reverse July good points. Specifically, Polygon [MATIC] shed over 25% after costs slumped from $0.89 to round $0.65 (July lows).
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Nonetheless, MATIC noticed renewed curiosity after retesting the July lows over the weekend (5-6 August). Regardless of the little spike in MATIC demand, BTC struggled to carry on to $29.0k, and further losses might expose MATIC bulls to danger.
Will the 38.2% Fib degree maintain?
Supply: MATIC/USDT on TradingView
A Fibonacci retracement instrument was positioned between the June low and July excessive. Based mostly on the instrument, the 50% Fib degree ($0.70) failed to carry the pullback. Up to now, 38.2% Fib degree ($0.655) has been retested twice as help.
On the time of writing, MATIC bounced from the 38.2% Fib degree. However the larger timeframe market construction was nonetheless bearish. Nonetheless, with the weak BTC, a worth rejection was possible on the 50% Fib degree ($0.70).
Beneath the 38.2% Fib lies bullish order blocks on the day by day and weekly charts. The day by day order block has been honored as soon as and will ease additional worth droop if the 38.2% Fib degree help cracks. So, the 38.2% and 23.6% Fib ranges are key curiosity ranges for bulls.
The Relative Energy Index and Chaikin Cash Circulate readings have been under essential thresholds – a damaging on the time of writing. It implies weak shopping for stress and capital inflows, suggesting the 50% Fib degree might act as a roadblock except BTC entrance a robust restoration above $29.5k.
Extra shopping for volumes over the weekend
Supply: CryptoMeter (MATIC Metrics on 6 August)
Regardless of the damaging worth chart readings, the general MATIC’s metrics within the spot market registered a renewed demand over the weekend.
How a lot are 1,10,100 MATICs value at present?
Based on CryptoMeter, the purchase quantity surpassed the promote quantity on the time of writing. However the general quantity dip by over 40% might complicate additional advance by bulls.
However, the futures market additionally registered an uptick in demand over the weekend. Based on Coinalyze, the Open Rates of interest jumped from $122 million to over $127 million as CVD (Cumulative Quantity Delta) surged.
Supply: Coinalyze
