Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Polygon investors can wait for the trend to shift bullish before buying, and that could take a while.
- MATIC traders have the $0.56-$0.6 region to focus on, and rejection from this resistance would embolden short sellers.
Bitcoin [BTC] traded at the $26k mark over the weekend. It has a strongly bearish bias on the price chart after the wave of selling seen earlier this month. This saw many altcoin prices, including Polygon [MATIC], tumble.
Read Polygon’s [MATIC] Price Prediction 2023-24
MATIC bulls remain weak and the price action indicated that more downside was likely. Yet, there was an attractive liquidity pocket northward. Will we see a brief respite in the bearish pressure this week?
MATIC showed an imbalance near $0.6 but no sign of wanting to fill that void yet
The 1-day price chart above showed the market structure was firmly bearish. To flip it bullishly, MATIC would need to breach the most recent lower high at $0.588 by closing a daily trading session above this mark. A look at the lower timeframe charts such as 4-hour and 1-hour indicated this was not likely yet.
The structure and momentum leaned in favor of the sellers on the lower timeframes. A move above $0.571 would be needed to flip this bias- but the higher timeframe bearish pressure meant any move higher would likely be short-lived. The daily RSI and OBV both supported this notion.
The RSI showed hefty downward momentum with a reading of 28 at press time, and the OBV was in a sharp decline throughout August. Hence, both the $0.56 and the fair value gap (white)
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Author: Akashnath S
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