MATIC traders can watch out for a retest of this level to sell the token

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.

• Polygon buyers can watch for the development to shift bullish earlier than shopping for, and that might take some time.
• MATIC merchants have the $0.56-$0.6 area to concentrate on, and rejection from this resistance would embolden brief sellers.

Bitcoin [BTC] traded on the $26k mark over the weekend. It has a strongly bearish bias on the worth chart after the wave of promoting seen earlier this month. This noticed many altcoin costs, together with Polygon [MATIC], tumble.

Learn Polygon’s [MATIC] Worth Prediction 2023-24

MATIC bulls stay weak and the worth motion indicated that extra draw back was possible. But, there was a gorgeous liquidity pocket northward. Will we see a short respite within the bearish stress this week?

MATIC confirmed an imbalance close to $0.6 however no signal of desirous to fill that void but

Supply: MATIC/USDT on TradingView

The 1-day worth chart above confirmed the market construction was firmly bearish. To flip it bullishly, MATIC would want to breach the newest decrease excessive at $0.588 by closing a day by day buying and selling session above this mark. A take a look at the decrease timeframe charts similar to 4-hour and 1-hour indicated this was unlikely but.

The construction and momentum leaned in favor of the sellers on the decrease timeframes. A transfer above $0.571 can be wanted to flip this bias- however the increased timeframe bearish stress meant any transfer increased would possible be short-lived. The day by day RSI and OBV each supported this notion.

The RSI confirmed hefty downward momentum with a studying of 28 at press time, and the OBV was in a pointy decline all through August. Therefore, each the $0.56 and the honest worth hole (white) at $0.6 will current a promoting alternative upon a retest.

The 23.6% Fibonacci extension stage at $0.4 introduced a bearish goal for MATIC within the weeks to return. It has confluence with a requirement zone from the weekly timeframe that stretched from $0.316-$0.5.

The speculators remained sidelined within the futures market as MATIC costs lacked a short-term development

Supply: Coinglass

Over the previous 5 days, MATIC has traded between $0.537 and $0.56 for essentially the most half and noticed lowered volatility. In flip, this led to a drop within the Open Curiosity over the previous week.

It signaled speculators lacked conviction within the course of the following transfer, and that merchants may should be affected person.

Supply: Santiment

Alternatively, the long-term knowledge from Santiment confirmed some bullishness.

Is your portfolio inexperienced? Examine the MATIC Revenue Calculator

The imply coin age was on the rise to point out the buildup of MATIC throughout the community. Provide on exchanges additionally fell over the previous week, as soon as once more signaling the withdrawal of the token and accumulation.

The value motion is usually extra dependable than on-chain metrics. Till we see a robust signal of bullish power on the worth chart, MATIC merchants can proceed to lean bearish.