Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- MATIC showed a short-term pullback against the $0.58 hurdle.
- There were more buy limit orders below $0.54, which could influence the pullback.
Polygon [MATIC] hit a known roadblock at $0.58 and tipped sellers to re-enter the market. At the time of writing, MATIC’s short-term retracement was heading towards a crucial and prior range high at $0.54.
Read Polygon [MATIC] Price prediction 2023-24
A recent bearish slope towards MATIC and the possible formation of new lows was subsequently declared invalid Bitcoins [BTC] sharp recovery.
BTC’s move above $30,000 sent MATIC up +15%, from the low end of the $0.50 range to a tricky overhead hurdle of $0.58. Will the pullback at the time of writing provide buyers with an opportunity to re-enter the market?
Could the pullback benefit the bulls?
Source: MATIC/USDT on TradingView
Since September, the difficult roadblock and bearish order block of $0.571 – $0.588 (red) in the second half of the year have prevented MATIC from additional appreciation. An early October fake move near $0.60 was quickly reversed, sending the altcoin down to its previous range-high ($0.545) and range-low ($0.50).
The pullback could taper at the confluence of a breaker block and reach high at $0.545. If so, a likely recovery could lead to a potential gain of 4.8% if MATIC retests the overhead hurdle at $0.58. Such a move could make the range-high a great buying opportunity.
A break below the range high will negate the bullish bias and force bulls to attempt another re-entry at the range low ($0.50).
Meanwhile, the RSI was in the overbought zone but showed a retreat. It meant that buying pressure eased in the last few hours before going to press. Similarly, demand fell slightly as evidenced by the decline in OBV.
There was huge buying interest below $0.56
Source: MobChart
How many Worth 1,10,100 MATICs today?
According to order book analysis platform Mobchart, there were significant buy limit orders at $0.55, $0.54, $0.52 and $0.50. The increased buying interest could mitigate a further decline.
On the sell side, $0.60 had huge sell limit orders. It could make a move beyond $0.60 challenging in the near term. It could act as an ideal take-profit in case of a recovery from the previous range high. But a drop below the range-high ($0.54) will invalidate the long setup.
