Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- MATIC’s near-term bulls defended the mid-range level
- Shorts discouraged; CVD spot wavers
Polygon [MATIC] rebounded strongly from its mid-range level of $0.8656 on 25 May. The move followed Bitcoin’s [BTC] attempt to stay firm within the $26k zone.
BTC breached the crucial support level of $26.6k amidst FOMC Minutes, exposing it to more aggressive selling, but bulls were fighting for recovery as of press time.
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Nevertheless, MATIC’s rally faces a critical range high that could stall bulls unless BTC reclaims the $26.6k level.
Will sellers gain leverage at the range high?
Source: MATIC/USDT on TradingView
The Relative Strength Index (RSI) crossed the median 50-mark, reiterating improved buying pressure in the past few hours. Similarly, the Chaikin Money Flow (CMF) edged higher, confirming increased capital inflows to the asset as of press time.
The short-term uptrend momentum could boost MATIC to retest the range high/lower high around $0.89 – $0.90. A likely price rejection at this level to drag MATIC lower, offering shorting opportunities at $0.8770, mid-range of $0.8656, or the range low/support zone of $0.84.
Bulls could re-enter the support zone if it doesn’t crack on a likely retest. The level lines up with a bullish order block (OB) on H12, formed on 16 May, and another bullish OB on H2, formed on 14 May. As such, it could be a strong support and demand zone for bulls to launch a recovery.
A bullish breakout and session close above $0.91 (range high) will be an invalidation. Such an upswing could see MATIC aim at $0.94. Bulls could wait for a retest and confirmed uptrend at a range high before making an entry.
How much is 1,10,100 MATICs worth today?
According to Coinglass’s liquidation data, over $24k in shorts positions wrecked in the past four-hours alone. Long positions suffered less than $200 worth of wreckage, reinforcing a short-term bullish momentum.
However, the Cumulative Volume Delta (CVD), which tracks volume and overall sentiment, faltered in the past two days after rising since 19 May. This could reinforce sellers couldn’t be overruled, especially upon the retest of the range high.