• Mon. May 20th, 2024

Polygon (MATIC) Poised for Uptrends but Long-Term Technicals Favor Sellers

Oct 23, 2022
  • Last month saw the high timeframe structure flipping to bearish
  • Selling pressure has slightly dominated since August

Polygon saw incredible surges in Daaps deployment on its blockchain since early this year. Moreover, the blockchain declared a web3 studio partnership. The previous ten days saw the $7.2B market capitalization token registering a swift rebound from the support level of $0.72.

Nevertheless, assessing higher timeframe charts indicated bearish signals over the last two months. Can MATIC overcome its 4-month range?

Check Selling Upside to $1 Instead of Breakout Expectations

Evaluating the 3-day chart indicated that the mid-September move toward $0.7 triggered a bearish market structure. It has exhibited these tendencies since. Thus, higher timeframe market players might look to sell $MATIC, trading with the trend.

Meanwhile, MATIC noted a fascinating development within the last ten days, plummeting swiftly to $0.715, then $0.775 before rebounding. That indicated that the price gathered liquidity from those substantial zones, reflecting upside possibilities during this publication.

Northward actions would encounter bearish blocks near $0.92 and then $1, with $1 being more substantial. Also, the psychological level at $1 marked the range’s high from $0.72. The RSI (Relative Strength Index) on the twelve-hour chart indicated an absence of a massive trend within the previous month.

While publishing this blog, the indicator defended 50-neutral and might rebound higher to suggest upside momentum. Meanwhile, the OBV (on-balance volume) printed multiple lower peaks since mid-August. That indicated that sellers somewhat controlled the marketplace over the past few months.

Dwindling Exchange Supply Signal Accumulation

The metrics front shows MATIC’s development activity noted impressive upsides in October. Though this index doesn’t correlate with price action well, longer-term market players might have faith due to continued developer work.

The exchange supply percentage maintained downtrends since mid-June. That was when the alt hovered near $0.4. Furthermore, this metric witnessed sharp upticks between January and June 20222, when MATIC dropped to $0.37 from $2.58. Thus, the metric’s decline indicated that long-term market participants could have purchased the token over time.

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