Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion
- Decrease timeframe charts had been bullish, whereas the each day chart was impartial at press time.
- Funding charges had been optimistic alongside surging open rates of interest.
Earlier than getting a gentle floor, Polygon [MATIC] depreciated 40%, from $1.57 to $0.94. Bulls received refuge at $0.94, fronting a restoration that hit a value ceiling at 50% Fib degree ($1.2558).
The second leg of restoration was on on the time of writing, however bulls should overcome a key impediment to hit a current swing excessive.
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The king coin, Bitcoin [BTC], retested its current excessive of $26K, which may push most altcoins, together with MATIC, to goal at their native highs too.
Nonetheless, if BTC faces value rejection on the $26K degree, the remainder of the altcoin market may enter right into a retracement.
Can bulls push above the 38.2% Fib degree?
MATIC’s uptrend rally within the second half of January chalked an ascending channel. However a breach above the channel confronted rejection at $1.57, setting MATIC to plunge 40%. Up to now, it has two legs of restoration.
The primary leg confronted rejection at 50% Fib degree ($1.2558), and the second leg, seen at press time, may try to restest the identical degree if bulls overcome the hurdle at 38.2% Fib degree ($1.1816).
However value rejection on the 50% Fib degree may provide one other correction with the 38.2% Fib degree ($1.1816) and 23.6% Fib degree ($1.0899) as key assist ranges if the pattern goes south.
Nonetheless, failure to shut above the 38.2% Fib degree may appeal to bears to sink MATIC to the 23.6% Fib degree ($1.0899) or the swing low of $0.94, particularly if BTC faces sharp retracement from $26K.
The Relative Power Index (RSI) and Accumulation/Distribution indicators confirmed sharp rises, indicating rising shopping for strain and accumulation previously few days.
Nonetheless, Common Directional Index (ADX) declined, suggesting a probable consolidation or correction for MATIC. Furthermore, the 200 EMA moved sideways, reinforcing a probable value consolidation situation for the asset within the subsequent few days/weeks.
Funding charges and OI elevated
As per Coinglass, MATIC’s funding charges remained pretty optimistic since 10 March – a bullish sign witnessed because the first leg of restoration.
Furthermore, the open curiosity (OI) fee elevated farther from 16 March, marking the beginning of the second leg of restoration after BTC hit $26K.
Learn Polygon [MATIC] Value Prediction 2023-24
A surge in OI past $1.20 may imply a bullish sentiment able to overcoming the hurdle on the 38.2% Fib degree. However a drop in OI beneath $1.2 may complicate the restoration.