MATIC plunged to $1.26, but it reversed course in the last few hours. There was insufficient demand to suggest that the bulls could push the market higher. However, Bitcoin would play a significant role.
On its lower time frame charts, Bitcoin has a similar structure and could easily go toward the $42k and $45k supply regions. As a result, Polygon’s native currency could do well on the price charts, as the crypto market often follows Bitcoin’s emotion.
MATIC has been trading in a range (yellow) between $1.31 to $1.48 for the past two and a half weeks, with the mid-point at $1.4. MATIC Price had fallen below the $1.3 support level the day before as bearish momentum grew stronger.
But it was really a sham to collect liquidity from late sellers, as the price reversed and climbed back above $1.3 and back into the range. This showed that MATIC could rise to the opposite end of the range in the coming week.
MATIC is anticipated to soar to $1.4 and $1.48 if these short bets are forced to close or liquidate, followed by a shift in momentum toward bullish. The $1.43-$1.45 range can also operate as a firm resistance zone on the way there.
The Road Ahead?
At press time, the RSI had surged above the neutral 50 line and appeared to be retesting it as support. The Awesome Oscillator has also gone above the zero line, indicating that the three-day decline has lessened or even halted.
The A/R line, on the other hand, barely showed a small recovery and overall signalled heavy selling pressure.
Despite the fact that the momentum indications appeared to be turning, there was no sign of substantial demand. Despite the lack of demand, MATIC is projected to move toward the $1.45 and $1.48 level in the coming days, if Bitcoin maintains over $39.8k.
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Source: https://coinpedia.org/price-analysis/matic-price-to-hit-1-45-in-coming-couple-of-days/