MATIC sees a weak bounce inside a demand zone, what can it mean for traders

MATIC sees a weak bounce inside a demand zone, what can it mean for traders

Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation

Data from Coinglass confirmed that, up to now few days, the proportion of brief positions has been barely higher than that of lengthy positions. The lengthy/brief ratio has been climbing up to now week to counsel that market members have been seeking to lengthy MATIC. The brief positions have been biggest when the value was close to the vary highs at $1.75. Can this imply that the native token of Polygon can see a bounce?

MATIC- 1 Hour Chart

MATIC sees a weak bounce inside a demand zone, could it plumb new lows?

Supply: MATIC/USDT on TradingView

Not fairly. On the 12-hour timeframe, the $1.42-$1.5 space was recognized as a bullish order block. Due to this fact, the cyan field on the chart above is a spot the place patrons can be seeking to purchase a retracement. But, that has not but panned out.

Fairly the opposite- as the value tried to bounce from $1.44, it fashioned a rising wedge sample and registered a decrease low as nicely. This growth hinted that additional lows are prone to be seen.

The Fibonacci extension ranges (yellow) primarily based on the value’s transfer down from $1.75 to $1.559 confirmed the  61.8% and 100% extensions ranges to lie at $1.44 and $1.368. For the reason that market construction was already bearish and MATIC has dipped under $1.44, it was possible that it could be headed towards $1.36 and $1.3 subsequent looking for demand.

Rationale

MATIC sees a weak bounce inside a demand zone, could it plumb new lows?

Supply: MATIC/USDT on TradingView

The RSI on the hourly chart neared impartial 50, and if it strikes beneath 40 as soon as once more within the subsequent few hours, it could be an indication of bearish energy. The OBV was at a stage it had beforehand visited a few days in the past on the bounce from $1.44. Therefore, if the OBV descends under the orange line, it could be one other signal of rising promoting stress.

The CMF additionally continued to remain beneath the -0.05 mark to indicate important capital move out of the market.

Conclusion

On the decrease timeframes, the market construction and momentum remained bearish for MATIC. The value had been unable to bounce strongly from the upper timeframe bullish order block (cyan field). A session shut under $1.44 would possible see MATIC head towards $1.36.

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