Journalist
Posted:
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The momentum and volume indicators showed that buyers did not clearly have the upper hand
- The liquidity position of $0.57 was attractive, but it was unclear whether MATIC could make the leap to reach that level
Polygon [MATIC] saw a decline in total value (TVL) and daily transactions in August. On September 14, Polygon announced the implementation of Polygon 2.0 and released 3 Polygon Improvement Proposals.
Read Polygon [MATIC] Price forecast 2023-24
The price has slowly moved higher over the past week, but the higher time frame trend remained firmly bearish. Still, there was a chance that the price would jump in the coming days.
The market structure was tilting in bullish favor
Source: MATIC/USDT on TradingView
On the four-hour chart, MATIC climbed to $0.536 on September 16. The previous lower high was $0.529 on September 10, meaning the recent rebound broke the bearish market structure. Moreover, the higher low of $0.515 was also defended in the last few hours and another low of $0.53 was recorded.
This underlined some short-term bullish intentions. The Relative Strength Index (RSI) was above the neutral 50, showing that bulls can push prices higher. On-Balance Volume (OBV) recorded a small increase since September 13. The OBV indicated that there was some buying pressure on the market. However, trading volume has been quite subdued in recent days.
On the one-day chart, the recent lower high was at $0.57, meaning it was an attractive liquidity position for MATIC to retest before continuing the downtrend into a higher time frame. Given the slightly bullish outlook on the four-hour chart, there was a buying opportunity, although it could be risky.
Market sentiment showed that bulls can remain cautious
Source: Coinalyse
While MATIC rose from $0.511 to $0.534 over the past 24 hours, Open Interest barely climbed higher. The meager rebound that OI saw was quickly extinguished after a dip in the lower time frame from $0.534 to $0.522. The conclusion was that speculators were reluctant to bid, quickly made profits and left the market.
Is your portfolio green? Check the MATIC Profit Calculator
The spot CVD also witnessed a downward trend since September 16, demonstrating a lack of demand over the weekend. Even though the funding rate was positive, MATIC bulls may wait for a move towards the recent low of $0.511 before making a bid.
