Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
The $0.8 and $0.7 areas symbolize areas the place Polygon’s native token MATIC had discovered good demand prior to now. The $0.65 space was visited final July earlier than a 330% rally to succeed in $2.93 in December.
It was too early to inform whether or not such an explosive rally might ensue, because the technical construction remained bearish on the charts. Breaking this downtrend might take time, and intense demand can be essential for the bulls to mount a comeback.
MATIC- 12 Hour Chart
Supply: MATIC/USDT on TradingView
On the charts, we see a gentle downtrend for MATIC since December 2021. In mid-March, a rally was witnessed, however the worth was rapidly pushed again beneath the $1.58 assist stage.
In Could, the value fell under the $1.2 space (purple field), which had acted as a zone of demand in September and October. Furthermore, MATIC examined this zone to substantiate it as an space of provide and fell beneath the $1 stage as effectively.
Prior to now few periods, MATIC fashioned a bullish engulfing candle on its bounce from the $0.79 assist stage. Such an engulfing signifies sturdy shopping for stress, however the query is- Can bulls actually comply with by means of in such bearish situations?
Additional south, beneath the $0.79 stage lies the $0.7 demand zone the place MATIC had rallied from final July.
Rationale
Supply: MATIC/USDT on TradingView
The RSI on the 12-hour chart has been under impartial 50 since late March. This meant that momentum has been on the facet of the bears prior to now six weeks, and indicated a bearish pattern. Prior to now few days, the RSI continued to be under 50.
On the similar time, the OBV has been on a gentle downtrend since April started, which meant that promoting quantity was dominant. This was very true prior to now week, because the OBV plummeted. Nonetheless, the CMF, which noticed a steep decline a number of days in the past, picked itself up and was again above the zero mark. Therefore, there was some suggestion of shopping for stress.
The Bollinger bands width indicator has fashioned a sequence of upper lows prior to now week, displaying that volatility has been on the rise on this time interval.
Conclusion
The indications and the pattern pointed towards a continuation of the bearish pattern. Volatility was on the rise, and promoting stress remained sturdy. Imminent ranges of significance are the $0.8 assist and $1 resistance, and a transfer previous both stage would possible dictate the course of MATIC within the days or even weeks to return.
