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- MATIC buyers continued to make progress despite a bearish market structure.
- Positive funding rates could benefit bulls in the short term.
Polygon [MATIC] The gentle recovery from the $0.5 support level continued to gain momentum over the past day. While the higher timeframe structure remained bearish, buyers slowly pushed prices higher, with MATIC trading at $0.54 at the time of writing.
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Moreover, buyers were encouraged by Bitcoin [BTC] rapid rise to the $27,000 price zone, leading to new bullish sentiment.
Bulls are taking a conservative approach to the recent price turnaround
Source: MATIC/USDT on Trading View
The 12-hour chart for MATIC revealed a conservative but persistently bullish approach to the price recovery. Following the gentle rebound from the $0.5 support, MATIC posted a 10.9% gain between September 12 and September 19.
A look at the Relative Strength Index (RSI) showed that buying pressure gradually increased over the period and stood at 58 at the time of writing. Similarly, the Chaikin Money Flow (CMF) turned positive with a value of +0.04.
These signals pointed to growing bullish confidence in the short term. Given the general bullish sentiment returning to the market, MATIC bulls could use this opportunity to recover towards the $0.65 to $0.7 price zone.
Mixed reactions on the futures market
Source: Coinalyse
Read Polygon [MATIC] Price forecast 2023-24
Derivatives market participants took a cautious approach to MATIC’s recent bullish moves. Dates of Coinalyse showed that Open Interest continued to decline, despite significant price gains. This led to a lack of conviction in MATIC’s price recovery.
However, the Funding Rate has been positive since September 14 and the Spot CVD maintained its upward trend. This indicated good demand for MATIC, which could be key for buyers to initiate a sustained bullish push.
