Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation
The $0.8 and $0.7 areas characterize areas the place Polygon’s native token MATIC had discovered good demand previously. 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 could be vital for the bulls to mount a comeback.
MATIC- 12 Hour Chart
On the charts, we see a gentle downtrend for MATIC since December 2021. In mid-March, a rally was witnessed, however the value was shortly pushed again beneath the $1.58 help stage.
In Might, 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 properly.
Up to now few periods, MATIC fashioned a bullish engulfing candle on its bounce from the $0.79 help stage. Such an engulfing signifies robust shopping for stress, however the query is- Can bulls actually comply with by way of in such bearish circumstances?
Additional south, beneath the $0.79 stage lies the $0.7 demand zone the place MATIC had rallied from final July.
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 previously six weeks, and indicated a bearish development. Up to now few days, the RSI continued to be under 50.
On the identical time, the OBV has been on a gentle downtrend since April started, which meant that promoting quantity was dominant. This was very true previously week, because the OBV plummeted. Nonetheless, the CMF, which noticed a steep decline just a few 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 collection of upper lows previously week, displaying that volatility has been on the rise on this time interval.
The indications and the development pointed towards a continuation of the bearish development. Volatility was on the rise, and promoting stress remained robust. Imminent ranges of significance are the $0.8 help and $1 resistance, and a transfer previous both stage would seemingly dictate the course of MATIC within the days or even weeks to return.