Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- MATIC hovered below the key resistance level as it appeared to be accelerating recent gains.
- Short positions worth $964.37k were liquidated in the last 24 hours.
Polygon posted gains of 9.7% over the past 24 hours [MATIC] to within touch distance of the $0.7414 resistance level. MATIC’s slow reversal from the July 2022 low of $0.5274 confined the altcoin to a range where neither bulls nor bears gained the upper hand.
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This bullish rebound will be the first retest of the $0.7414 level after the price broke below the level on June 9. Can bulls flip the level and move on for more profit?
Bullish momentum is slowly rising
Source: MATIC/USDT on trade view
Due to the bearish market structure, MATIC’s recovery met with strong resistance. However, bulls have made significant progress.
Since the Moving Average Convergence Divergence (MACD) indicator posted a bullish crossover on June 16, MATIC has been in an upward trend. The Relative Strength Indicator (RSI) also climbed out of the oversold zone and stood at 65 at the time of writing, highlighting growing buying pressure for MATIC.
Bulls need to break the local low at the $0.7414 resistance level to post significant gains. A break and retest at this level could provide buying opportunities at $0.8355 and $0.9504.
On the other hand, a price rejection at the $0.7414 level could increase selling pressure and push MATIC down to $0.6000 or $0.5500
Buyers spurred on by bullish reaction in futures markets
Source: Coinglass
MATIC short positions have taken huge losses in the futures market over the last 24 hours Mint glass. This was due to $964.37k of short positions being liquidated out of a total of $1.19m, representing 81% of total liquidations within the period.
How much are 1,10,100 MATICs worth today?
Longs seized the initiative and took a 51.11% advantage on the exchange long/short ratio. As such, the link between the price action and the futures market points to significant bullish action for MATIC.
Source: Mint glass
