Disclaimer: The data offered doesn't represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion
- MATIC has cleared over three-quarters of the good points constituted of the mid-February rally.
- A bullish divergence between open rates of interest and worth motion might supply bulls hope.
Polygon [MATIC] has given up over three-quarters of its good points from the mid-February rally. It confronted a vital take a look at because it dropped to its multi-week ascending trendline. Whereas the latest worth rejection at $1.55 triggered a 20% depreciation, there was nonetheless hope for bulls if Bitcoin [BTC] maintained the psychological degree of $23k.
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Can the ascending line verify the drop?
Following the mid-February rally, which noticed MATIC surge by 34% from $1.1611 to $1.5567, the next correction triggered MATIC to drop by 20%, erasing greater than three-quarters of its earlier good points.
The Relative Energy Index (RSI) was beneath 50, indicating a bearish construction. If it crosses beneath the ascending line, the momentum might additionally shift to bearish. Moreover, the Chaikin Cash Stream (CMF) has headed south and crossed beneath the zero line, reinforcing the bears’ leverage available in the market.
In consequence, bears could proceed to devalue MATIC beneath the ascending trendline. Quick-sellers may benefit from further shorting alternatives on the 100-period exponential shifting common (EMA) of $1.1796. The 200-period EMA of $1.0640 might verify an prolonged drop.
Alternatively, long-term bulls could intention for $1.3534 or the overhead resistance zone above $1.5, however this transfer can solely be made if the ascending line stops the plunge.
Learn Polygon’s [MATIC] Worth Prediction 2023-24
Open curiosity declined however confirmed indicators of pivot at press time
Nonetheless, OI rose at press time, forming a divergence with worth, which might point out a possible worth reversal. This growth could give bulls hope for regular floor on the ascending line degree of $1.25. Nevertheless, bulls should look forward to a retest on the ascending line and affirmation of an uptrend earlier than getting into lengthy positions.
In conclusion, the destiny of MATIC hangs within the steadiness because it drops to its multi-week ascending trendline. Whereas bulls could discover hope within the bullish divergence between open rates of interest and worth motion, the bears nonetheless have the higher hand, with the RSI and CMF indicating a bearish market construction.