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Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion
- MATIC traded above a better timeframe demand zone
- The rally to $0.87 and subsequent rejection confirmed the downtrend was more likely to prolong additional southward
Polygon [MATIC] was buying and selling simply above a powerful demand zone. The $0.5 help stage has been defended nicely since June, but it surely was clear from the value motion that the bulls had been shedding energy.
Learn Polygon’s [MATIC] Value Prediction 2023-24
The rally to $0.87 in July was worn out over the previous two months and was a powerful sign that the bears had been out for blood. Proof from the symptoms supported the concept that MATIC was headed towards additional losses.
The Fibonacci extension ranges current bearish worth targets for MATIC
Supply: MATIC/USDT on TradingView
The transfer down from $0.97 to $0.5 in late Could and June was used to plot a set of Fibonacci retracement and extension ranges (pale yellow). After the sharp downward transfer, MATIC rallied to the 78.6% retracement stage at $0.87. A plunge to the $0.51 mark occurred after this rally.
This was a powerful signal that the 23.6% and 61.8% Fib extension ranges had been the following targets. It’s no assure that MATIC would drop that low however the worth motion and the symptoms counsel it may.
The Relative Energy Index (RSI) on the three-day chart has been under impartial 50 since April to point a powerful downtrend on the longer time horizons. The On-Steadiness Quantity (OBV) has additionally been sliding decrease since June, which denoted promoting quantity outweighed the patrons and the market was dominated by bears.
The $0.32-$0.5 was a bullish order block on the weekly timeframe. The 23.6% extension stage at $0.4 was an affordable bearish goal within the coming weeks.
MATIC noticed constant improvement exercise but additionally spikes in promoting stress in September
Supply: Santiment
The event exercise has trended increased since August with out heed to the declining costs. That is an encouraging issue for long-term holders. The availability on exchanges has additionally slowly dwindled since mid-July to point out an accumulation of the tokens in chilly wallets.
Is your portfolio inexperienced? Test the Polygon Revenue Calculator
The Market Worth to Realized Worth (MVRV) ratio signaled MATIC was undervalued, however doesn’t promise the costs will rally. In current weeks, the dormant circulation metric noticed a number of spikes to underline the sudden motion of beforehand dormant MATIC. This seemingly pointed to particular person waves of promoting.
