MATIC’s latest price action could put short-term holders at a risk. Here’s why…

Trending 8 months ago

Disclaimer: The accusation presented does not represent financial, investment, trading, oregon different types of proposal and is solely the writer’s opinion

  • MATIC’s existent short-term trading scope whitethorn persist unless BTC changes direction
  • Analysts held a bearish stance connected the plus arsenic trading volumes declined

Polygon [MATIC] has traded sideways since the precocious hours of 14 January. Bitcoin’s [BTC] bullish momentum eased into the weekend, cooling disconnected the rally witnessed by altcoins successful the past fewer days.

BTC’s short-term marketplace operation was successful a trading scope of $20.14K – $21.41K. Most of the altcoins followed suit, forming their respective short-term trading range. 

At property time, MATIC was trading astatine $0.976 and could proceed to oscillate wrong this scope successful the adjacent fewer hours/days. 

Read Polygon’s [MATIC] Price Prediction 2023-24

Is MATIC work to power sides?

Source: MATIC/USDT connected TradingView

The caller bull rally saw MATIC signifier a rising transmission (white) connected the four-hour chart. MATIC traded sideways wrong the $0.9701 – $1.0076 range, and the operation fell betwixt the 78.6% and 61.8% Fib levels.

The Relative Strength Index (RSI) retreated from the overbought portion part the On Balance Volume (OBV) declined and moved sideways. This showed that buying unit fell, but the fluctuating trading volumes could further acceptable MATIC for an further enactment successful its sideways structure. 

Thus, MATIC could oscillate betwixt $0.9701 – $1.0076 successful the adjacent fewer hours/days oregon interruption beneath it to the 50% Fib level of $0.9437 if trading volumes fell sharply. 

How overmuch is 1, 10, 100 MATICs worthy today?

However, a interruption supra $1.0076 would nullify the supra neutral bias. Such a determination could hap if BTC’s bullish momentum accrued and pushed it supra its existent range. The upside plaything could spot MATIC retest the overhead absorption astatine $1.0554. 

MATIC’s trading volumes and capitalist assurance declined

Source: Santiment

According to Santiment, MATIC’s trading volumes peaked connected Saturday (14 January) earlier taking a U-turn. At the clip of publication, the trading volumes had dropped from astir 1 cardinal to astir 850 cardinal arsenic prices fell lower. 

The caller terms driblet discarded short-term HODLers’ anticipation of turning a profit. The 30-day marketplace worth to realized worth (MVRV) had retreated from the deeper antagonistic portion lone to descent somewhat deeper into the portion aft failing to transverse the neutral line. This showed that short-term MATIC HODLers saw reduced losses but could beryllium exposed to much losses successful the abbreviated term. 

In addition, MATIC’s weighted sentiment turned antagonistic arsenic the terms peaked connected 14 January. This indicated analysts’ bearish outlook and could little MATIC’s prices if it persists.

Ser Suzuki Shillsalot has 8 years of acquisition moving arsenic a Senior Investigative writer astatine The SpamBot Times. He completed a two-hour people successful journalism from a fashionable YouTube video and was 1 of the fewer to springiness it a affirmative rating. Shillsalot's writings chiefly absorption connected shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is simply a flimsy anticipation the illustration pic is AI-generated. You see, this relationship is chiefly utilized by our freelancer writers and they privation to stay anonymous. Wait, are they Satoshi? :/

Source Ambcrypto