Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion
- Decrease timeframe charts have been bullish, whereas the each day chart was impartial at press time.
- Funding charges have been constructive alongside surging open rates of interest.
Earlier than getting a gentle floor, Polygon [MATIC] depreciated 40%, from $1.57 to $0.94. Bulls bought refuge at $0.94, fronting a restoration that hit a worth ceiling at 50% Fib degree ($1.2558).
The second leg of restoration was on on the time of writing, however bulls should overcome a key impediment to hit a current swing excessive.
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The king coin, Bitcoin [BTC], retested its current excessive of $26K, which might push most altcoins, together with MATIC, to goal at their native highs too.
Nevertheless, if BTC faces worth rejection on the $26K degree, the remainder of the altcoin market might enter right into a retracement.
Can bulls push above the 38.2% Fib degree?
Supply: MATIC/USDT on TradingView
MATIC’s uptrend rally within the second half of January chalked an ascending channel. However a breach above the channel confronted rejection at $1.57, setting MATIC to plunge 40%. Thus far, it has two legs of restoration.
The primary leg confronted rejection at 50% Fib degree ($1.2558), and the second leg, seen at press time, might try and restest the identical degree if bulls overcome the hurdle at 38.2% Fib degree ($1.1816).
However worth rejection on the 50% Fib degree might provide one other correction with the 38.2% Fib degree ($1.1816) and 23.6% Fib degree ($1.0899) as key assist ranges if the development goes south.
Nevertheless, failure to shut above the 38.2% Fib degree might entice bears to sink MATIC to the 23.6% Fib degree ($1.0899) or the swing low of $0.94, particularly if BTC faces sharp retracement from $26K.
The Relative Energy Index (RSI) and Accumulation/Distribution indicators confirmed sharp rises, indicating growing shopping for strain and accumulation prior to now few days.
Nevertheless, Common Directional Index (ADX) declined, suggesting a probable consolidation or correction for MATIC. Furthermore, the 200 EMA moved sideways, reinforcing a probable worth consolidation state of affairs for the asset within the subsequent few days/weeks.
Funding charges and OI elevated
Supply: Coinglass
As per Coinglass, MATIC’s funding charges remained pretty constructive since 10 March – a bullish sign witnessed for the reason that first leg of restoration.
Furthermore, the open curiosity (OI) charge elevated farther from 16 March, marking the beginning of the second leg of restoration after BTC hit $26K.
Learn Polygon [MATIC] Worth Prediction 2023-24
A surge in OI past $1.20 might imply a bullish sentiment able to overcoming the hurdle on the 38.2% Fib degree. However a drop in OI beneath $1.2 might complicate the restoration.
Supply: Coinglass
