- MATIC’s market structure on the daily timeframe remained bearish.
- Indecision between buyers and sellers kept prices stuck in a range.
Polygon [MATIC] began the year as one of the best-performing cryptocurrencies. It posted a 108.9% gain between 1 January and 18 February. However, a huge correction flipped its market structure from bullish to bearish.
How much are 1,10,100 MATICs worth today?
Prices traded sideways between mid-March to mid-April before BTC’s correction sent MATIC on another downward spiral.
MATIC stuck in a tight spot
Source: MATIC/USDT on Trading View
The indecision between buyers and sellers has confined MATIC to a tight range for the past three weeks. It has traded between the $0.950 support level and $1.028 resistance level on the four-hour timeframe.
The bullish order block’s confluence with the $0.950 support level just below it has served as a rallying point for bulls. Price has bounced off the support level four times in quick succession to stem the selling pressure.
However, the RSI and CMF both pointed to weakening buying pressure at that level. The RSI has stayed under neutral 50 over a two-day period while the CMF was at -0.15 as of press time.
A four-hour candle close below the $0.950 support level could lead to a bearish breakout for MATIC with $0.835 as the target for bears.
Read Polygon’s [MATIC] Price Prediction 2023-24
Could a bullish reversal be on the horizon?
A look at key on-chain metrics suggested MATIC buyers might not be giving up yet. Data from Santiment showed a decline in active addresses and an increase in the total number of holders. This showed that an accumulation could be ongoing for Polygon’s native currency.
Source: Santiment
Funding rates have been consistently positive over the past 14 days, which showed that demand existed for MATIC, even at press time. The spot CVD also experienced an uptick.
A bullish reversal will be hugely dependent on the confluence of the bullish order block and support level at $0.950 holding out once again.
Source: Coinalyze
Source: https://ambcrypto.com/polygon-matic-approaches-range-lows-what-traders-can-expect-next/