Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MATIC’s pullback hit July lows, clearing all recent gains.
- But buying volumes increased over the weekend.
The bearish sentiment from mid-July still looms in early August. Over this period, Bitcoin’s [BTC] price action has weakened, exposing most altcoins to reverse July gains. In particular, Polygon [MATIC] shed over 25% after prices slumped from $0.89 to around $0.65 (July lows).
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However, MATIC saw renewed interest after retesting the July lows over the weekend (5-6 August). Despite the little spike in MATIC demand, BTC struggled to hold on to $29.0k, and extra losses could expose MATIC bulls to risk.
Will the 38.2% Fib level hold?
A Fibonacci retracement tool was placed between the June low and July high. Based on the tool, the 50% Fib level ($0.70) failed to hold the pullback. So far, 38.2% Fib level ($0.655) has been retested twice as support.
At the time of writing, MATIC bounced from the 38.2% Fib level. But the higher timeframe market structure was still bearish. However, with the weak BTC, a price rejection was feasible at the 50% Fib level ($0.70).
Below the 38.2% Fib lies bullish order blocks on the daily and weekly charts. The daily order block has been honored once and could ease further price slump if the 38.2% Fib level support cracks. So, the 38.2% and 23.6% Fib levels a
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Author: Benjamin Njiri
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