MATIC retests June lows – Will bulls see a reprieve?

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

• MATIC has been consolidating above $0.50 since 18 August. 
• Open Rates of interest stagnated, however funding charges had been destructive. 

Polygon [MATIC] retreated to June lows, a key curiosity stage for bulls, however there was no strong reversal on the playing cards but. It posted an additional 8% loss on 17 August earlier than coming into a slender value consolidation above $0.5 from 18 August. 

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Within the meantime, Bitcoin [BTC] was but to reverse current losses after dipping to $25.16k. On the time of writing, it struggled to remain above $26k, which might additional delay a powerful rebound for MATIC. 

Is vary extension doubtless?

Supply: MATIC/USDT on TradingView

The Relative Energy Index (RSI) retreated to the oversold zone and has stayed there since 17 August. It underscores the prevalent promoting stress that hadn’t abated but on the time of writing. 

Equally, the Chaikin Cash Stream (CMF) has been wavering beneath zero. The pattern demonstrates a muted capital influx, reinforcing the bearish bias on the spot market. 

MATIC’s drop eased on the bullish order block (OB) above $0.50 (cyan). The extent aligns with June lows, which noticed profitable rebounds upon retest. Nonetheless, the weak BTC might delay a strong MATIC rebound. 

So, sellers might push it decrease to $0.509 if BTC data further losses. However a liquidity hunt beneath $0.50 couldn’t be overruled. 

Conversely, a strong rebound might tip bulls to focus on $0.65 or $0.70, particularly if BTC recovers misplaced floor within the subsequent few days. 

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

Funding charges had been destructive

Supply: Coinalyze

On Coinalyze’s 1-hour chart, the Open Curiosity improved barely and went sideways. It illustrates that demand improved barely after which stagnated. The dearth of strong demand within the derivatives market might delay the anticipated restoration. 

The destructive funding charges might additional worsen the scenario for these anticipating to lengthy the asset. The destructive studying is a bearish sign. So, monitoring BTC value motion is vital earlier than going lengthy or brief on the asset.