Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The H4 bearish breaker would likely offer intense resistance on retest.
- The FVG in the $0.92 area was also something to watch out for.
MATIC saw another leg on the price charts after the bulls failed to defend critical support at $0.95. This zone had a confluence of longer-term technical and horizontal support levels, but the bears were too strong.
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With Bitcoin also below $27.8k, more losses were likely to follow after a small increase in prices over the weekend. MATIC saw some calm at the $0.82 support in the past 24 hours.
A breaker block just above an imbalance meant bulls were at a major disadvantage
The above charts marked the former bullish order block in the $0.94-$1 area in red. This area acted as a support area at the end of April, but eventually the bulls succumbed. Therefore, the bullish OB flipped to a bearish breaker.
In addition, the charts showed the presence of a fairly large imbalance that had emerged on May 8. This FVG ranged from $0.9 to $0.93 and could attract MATIC before prices got lower.
Combined with the breaker block above, it was highly likely that MATIC bulls would not be able to take prices above $1 unless sentiment changed dramatically.
The Awesome Oscillator showed that bearish momentum was weakening, and was a result of the $0.82 bounce. Meanwhile, the CMF remained below -0.05, indicating strong capital outflows from the market.
Sentiment was heavily leaning towards a bearish upside, but has begun to shift in recent hours
The spot CVD was in a steep downtrend from May 8 to May 11, but began to reverse on May 12. This showed an influx of buyers that boosted the $0.82 bounce.
Open Interest rose nearly $10 million on May 11 as MATIC fell from $0.86 to $0.82, signaling massive bearish sentiment.
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This has softened over the past 36 hours as the OI showed that some bullish speculation has begun to emerge.
OI and prices rose together on May 12 indicating a lower time frame. A retest of $0.9 and $0.94 followed by rejection can be used by MATIC short sellers.