Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
- MATIC broke through a key Q1 2023 support zone of $0.9172 – $0.9498.
- Monthly holders lost more than 10%.
Macroeconomic headwinds continue to hammer crypto markets hard. But the intensity seems overwhelming for it Polygon [MATIC] after falling to January levels, recouping most of the gains made in the first quarter of 2023.
At the time of writing, MATIC was trading at $0.8582, well below the Q1 2023 threshold support zone of $0.9172 – $0.9498. Likewise, Bitcoin [BTC] was well below $27.5k at the time of writing, which could put more downward pressure on performance in the lower time frame.
How many are 1,10,100 MATICS worth today?
To January Levels – Will Bulls Come Through?
Source: MATIC/USDT on TradingView
On the 4-hour chart, the RSI was in the oversold zone with a value of 24 at the time of writing – an extremely bearish position. But OBV has fluctuated over the past two weeks, undermining a strong recovery.
The support zone (cyan) breakout caused sellers to aggressively drop MATIC below $0.8712. Sellers could continue to slow MATIC to lower support levels at $0.8140 or $0.7514 if bearish sentiment continues for the next few hours/days.
Alternatively, MATIC could try to rally and close above the support zone, especially if BTC reclaims $28k and rises. But the rally could stop at the recent high of $1,000 on May 4.
Month holders in red
Source: Sentiment
Is your wallet green? Account MATIC profit calculator
MATIC’s 30-day MVRV (Market Value to Realized Value), which measures short-term profit/loss of holders, is -13% deep. It indicates that MATIC monthly holders had lost and the altcoin was undervalued.
Moreover, sentiment has remained negative since mid-April, underlining the bears’ upper hand. In addition, the financing rate was negative at press time, further tipping the scale in favor of sellers.
However, if BTC reverses recent losses, it will pull back MATIC and provide bulls with a reprieve.
Source: Sentiment
