MATIC traders can wait for a bounce to this area before entering short positions

1 year ago 97

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

  • The marketplace operation connected the regular timeframe was bearish
  • The beingness of the 78.6% retracement level added confluence to the absorption astatine $0.82

Bitcoin [BTC] has not initiated a ample determination successful caller weeks. Polygon [MATIC] besides stayed comparatively quiescent connected the terms charts. It bounced betwixt the $0.759 and $0.822 levels of enactment and resistance, but the higher timeframe bias was bearish.

How galore MATICs tin you get for $1?

Accordingly, traders tin question retired selling opportunities and commercialized with the trend. One specified accidental tin contiguous itself if the token climbed to the absorption country highlighted connected the charts.

The bearish breaker and momentum continued to favour MATIC sellers

MATIC traders tin  hold   for a bounce to this country  earlier  entering abbreviated  positions

Source: MATIC/USDT connected TradingView

The terms enactment remained bearish for MATIC connected the higher timeframes. It has fallen beneath the 78.6% retracement level of the determination northward backmost successful October. A bearish breaker connected the regular timeframe has besides developed close astatine the 78.6% retracement level (highlighted successful red).

The moving averages showed bearish momentum, and the Relative Strength Index (RSI) besides moved beneath neutral 50 to item the same. The Accumulation/Distribution (A/D) indicator has formed higher lows since precocious November, but did not yet awesome bullishness. The Chaikin Money Flow (CMF) was successful neutral territory, and did not awesome important superior travel into oregon retired of the market.

A bullish lawsuit tin beryllium made erstwhile MATIC climbs supra $0.822 and retests it arsenic support. This could connection a buying accidental targeting $0.925. However, arsenic things stand, a much compelling lawsuit tin beryllium made for the bears.

The bearish breaker extended from $0.8 to $0.85, and lone a regular league adjacent supra this country would invalidate the bearish idea. Therefore, abbreviated sellers tin look to load their positions connected a determination up to $0.82-$0.84, and people $0.76 and $0.69 arsenic take-profit levels.

Sentiment flips antagonistic erstwhile again and speech outflow saw a tiny summation adjacent the bottom

The weighted sentiment down the token has been neutral successful the past fewer days. Late December saw sentiment sprout wildly into affirmative territory. However, the terms lone managed to emergence from $0.795 to $0.816- a 2.92% determination higher.

The speech inflow and outflow did not spot ample spikes successful caller weeks, though the outflow metric did spot a tiny bump erstwhile the prices reached $0.771 to amusement immoderate accumulation.

The 30-day Market Value to Realized Value (MVRV) ratio stood successful antagonistic territory, and has been present since mid-December. This showed the token could beryllium undervalued connected the little timescales.

On the different hand, the 365-day MVRV ratio (not shown here) has climbed higher since June and formed higher lows, though it inactive remained successful antagonistic territory.

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The inference was that holders mightiness request to hold for galore much months earlier a beardown higher timeframe uptrend tin beryllium established.

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