Disclaimer: The findings of the following analysis are the author’s sole opinion and should not be taken as investment advice
Steady selling pressure over the past week made it difficult for bulls to design a breakout above the range. MATIC will have a bullish bias in the shorter time frame as long as it defends the $0.9 level.
The Polygon ecosystem has seen some good news emerge in recent days. A partnership with Earn Alliance Partners aiming to bring in millions of gamers to Web3. NFT buyers on the Polygon network have also grown tremendously, according to Polygon co-founder Sandeep Nailwal.
Read Polygons [MATIC] Price Forecast 2023-24
MATIC has a bullish bias on the lower time frame price charts. The buyers have to work much harder to force a strong uptrend for MATIC in the coming days. Meanwhile, traders can monitor the range that has developed over the past week.
The short-term range behind Polygon did not encourage bulls
MATIC has been trading within a range (yellow) of $1.03 to $0.72 since July. It saw a huge increase to $1.27 in November, but the panicked market ended the breakout MATIC bulls had caused.
Since Nov. 30, MATIC has been trading within a shorter term (blue) that has stretched from $0.95 to $0.866 on the lows. The midpoint of this range was at $0.9 and was a significant level over the past week.
The RSI barely hovered above the neutral 50 and showed no bullish momentum. The market structure has been bullish for the past few days, but that wasn’t saying much because of the range mentioned above.
The OBV reached lower highs in December. Therefore, buying pressure was weak. Bulls can wait for a retest of the range lows, or a move past $0.95, before entering good risk-to-reward long positions.
Falling OI showed no breakout imminent, short positions saw major liquidations
The Open Interest has fallen since 9 December. During that time, MATIC was trading between $0.92 and $0.87. As it traded within the range, it did not have strong momentum or a clear trend. Falling OI indicated that bulls were likely to close at a loss. Meanwhile, sellers didn’t seem ready to force the issuance.
A 4% move in December from $0.9 to $0.936 caused $37.07 million in short positions to be liquidated on exchanges around the world. The forced close of shorts likely fueled the upside move, but it still failed to approach local highs near $0.95.
The financing rate remained positive. A breakout past $0.95 and its retest may give buyers room to consider a trading opportunity targeting $1.03.
This post MATIC: A breakout above $0.95 and its retest could give buyers room to…
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