Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation
Data from Coinglass confirmed that, up to now few days, the proportion of quick positions has been barely larger than that of lengthy positions. The lengthy/quick ratio has been climbing up to now week to counsel that market contributors have been trying to lengthy MATIC. The quick positions have been best when the value was close to the vary highs at $1.75. Can this imply that the native token of Polygon can see a bounce?
MATIC- 1 Hour Chart
Supply: MATIC/USDT on TradingView
Not fairly. On the 12-hour timeframe, the $1.42-$1.5 space was recognized as a bullish order block. Subsequently, the cyan field on the chart above is a spot the place consumers could be trying to purchase a retracement. But, that has not but panned out.
Reasonably the opposite- as the value tried to bounce from $1.44, it shaped a rising wedge sample and registered a decrease low as effectively. This improvement hinted that additional lows are more likely to be seen.
The Fibonacci extension ranges (yellow) based mostly on the value’s transfer down from $1.75 to $1.559 confirmed the 61.8% and 100% extensions ranges to lie at $1.44 and $1.368. Because the market construction was already bearish and MATIC has dipped under $1.44, it was possible that it will be headed towards $1.36 and $1.3 subsequent in the hunt for demand.
Rationale
Supply: MATIC/USDT on TradingView
The RSI on the hourly chart neared impartial 50, and if it strikes beneath 40 as soon as once more within the subsequent few hours, it will be an indication of bearish energy. The OBV was at a degree it had beforehand visited a few days in the past on the bounce from $1.44. Therefore, if the OBV descends under the orange line, it will be one other signal of rising promoting stress.
The CMF additionally continued to remain beneath the -0.05 mark to indicate vital capital circulation out of the market.
Conclusion
On the decrease timeframes, the market construction and momentum remained bearish for MATIC. The worth had been unable to bounce strongly from the upper timeframe bullish order block (cyan field). A session shut under $1.44 would possible see MATIC head towards $1.36.
