MATIC in a steady downtrend, here’s where you can look to go short

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

• The order block and truthful worth hole hinted that MATIC might see a small rally to fill the hole.
• The energy of the downtrend meant merchants must be ready for a drop beneath the help as properly.

On the decrease timeframes, Polygon [MATIC] appeared to point out some bullish momentum, however it was accompanied by heightened volatility over the previous two days. Evaluation of the upper timeframes confirmed that the pattern was overwhelmingly bearish.

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

This doesn’t rule out a minor bounce in MATIC costs. The imbalance MATIC left throughout its sudden plunge beneath $1 on 8 Might may very well be retested. How possible is such a situation, and will bears take their alternative upon such a retest?

Will a decrease timeframe bull lure be witnessed throughout the subsequent week?

Supply: MATIC/USDT on TradingView

The energy of the downtrend since February has compelled MATIC to lose degree after degree of help. Nonetheless, every degree from $1.3 has been retested. This isn’t assured to repeat, however prompt {that a} transfer upward to $0.9-$1 earlier than one other flip downward was not inconceivable.

Each the OBV and the RSI had been in bearish favor. The RSI confirmed a studying of 37 to indicate robust downward momentum. It has been under impartial 50 on the every day chart since mid-April, which highlighted the bearish pattern of the previous month.

The OBV was additionally in decline since mid-April. Even in March, it didn’t climb greater by a major margin regardless of MATIC’s bounce from $0.94 to $1.24. From a worth motion perspective, an imbalance (white) and a bearish order block (crimson) had been current within the $0.9-1.02 space. It was potential {that a} decrease timeframe rally to this space can be adopted by rejection, which brief sellers can look to capitalize on.

How a lot are 1,10,100 MATICs price at this time?

Spike in dormant circulation highlights a wave of promoting

Supply: Santiment

On 17 Might, the 90-day dormant circulation surged to two-month highs. The funding price additionally dropped into unfavorable territory momentarily in response to the strain from the bears. But, MATIC didn’t fall beneath the $0.84 help.

The funding price has been optimistic since then, and the value bounced by close to 3% since then to commerce at $0.87 at press time. An encouraging issue for the patrons was the rising imply coin age. This uptrend meant that MATIC bulls had been accumulating the asset. It stays to be seen whether or not they can drive a breakout previous the $1 resistance, which can be a psychologically essential space.