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 up to now. The $0.65 space was visited final July earlier than a 330% rally to achieve $2.93 in December.
It was too early to inform whether or not such an explosive rally may ensue, because the technical construction remained bearish on the charts. Breaking this downtrend may take time, and intense demand can be mandatory for the bulls to mount a comeback.
MATIC- 12 Hour Chart
On the charts, we see a gradual downtrend for MATIC since December 2021. In mid-March, a rally was witnessed, however the worth was shortly pushed again beneath the $1.58 assist stage.
In Could, the value fell beneath the $1.2 space (crimson field), which had acted as a zone of demand in September and October. Furthermore, MATIC examined this zone to verify it as an space of provide and fell beneath the $1 stage as nicely.
Up to now few classes, MATIC fashioned a bullish engulfing candle on its bounce from the $0.79 assist stage. Such an engulfing signifies sturdy shopping for strain, however the query is- Can bulls actually comply with by means of in such bearish situations?
Additional south, beneath the $0.79 stage lies the $0.7 demand zone the place MATIC had rallied from final July.
Rationale
The RSI on the 12-hour chart has been beneath impartial 50 since late March. This meant that momentum has been on the aspect of the bears up to now six weeks, and indicated a bearish pattern. Up to now few days, the RSI continued to be beneath 50.
On the identical time, the OBV has been on a gradual downtrend since April started, which meant that promoting quantity was dominant. This was very true up to now week, because the OBV plummeted. Nevertheless, the CMF, which noticed a steep decline a couple of days in the past, picked itself up and was again above the zero mark. Therefore, there was some suggestion of shopping for strain.
The Bollinger bands width indicator has fashioned a sequence of upper lows up to now week, exhibiting that volatility has been on the rise on this time interval.
Conclusion
The indications and the pattern pointed towards a continuation of the bearish pattern. Volatility was on the rise, and promoting strain remained sturdy. Imminent ranges of significance are the $0.8 assist and $1 resistance, and a transfer previous both stage would doubtless dictate the path of MATIC within the days or even weeks to come back.