On August 29th, Polygon (MATIC) experienced a short-lived recovery on the charts. Like the rest of the crypto market, its short-term outlook turned bullish for a brief period. However, the gains derived from Bitcoin’s (BTC) SEC victory against Grayscale proved to be short-lived.
Bitcoin started trading again at $26,000, and many altcoins failed to hold key short-term support levels. MATIC was one of them. The downward trend continued on higher time frames, and traders may look for selling opportunities.
MATIC Coin Analysis
The 4-hour price chart showed that the market structure was once again in a downward trend. The lower level formed at $0.578 on August 30th could not be defended, and a breakdown of the bearish market structure occurred on August 31st. Therefore, there was a bearish order block at the $0.58 region highlighted in the red box.
In the past few days, MATIC prices remained above the $0.539 level. The momentum was bearish but not significant, with the RSI indicating weak downward momentum at 45. There were two short-term resistance levels (dotted orange) at $0.558 and $0.59, where rejections could occur.
- OBV experienced a small, slow rise in September, supporting the idea that MATIC could see a small bounce.
- However, such a move may not have the power to break above the $0.59 resistance and turn the 4-hour market structure bullish.
- Therefore, traders may consider entering short positions near the $0.58 region, invalidating any move above $0.59 and targeting a lower level of $0.53.
Polygon Coin Future
The stagnant price movement in September caused Open Interest to adopt a stagnant structure. Speculators seemed reluctant to enter the market and invest in a significant price movement as MATIC showed no signs of fluctuation over the weekend. Funding rates were negative, indicating that traders preferred to take short positions in MATIC rather than long positions at this point.
However, despite these factors, spot CVD showed a steady upward trend throughout the past week. This indicated demand in the market as buyers attempted to acquire some MATIC just above the long-term support level of $0.5. While this may be good news for long-term buyers, it may not have much impact on short-term traders, and despite positive CVD, prices could fall towards the $0.53 level.