How MATIC holders can re-enter at these levels

Dis­claimer: The infor­ma­tion pre­sent­ed does not con­sti­tute finan­cial, invest­ment, trad­ing, or oth­er types of advice and is sole­ly the writer’s opinion

• MATIC’s near-term bulls defend­ed the mid-range level 
• Shorts dis­cour­aged; CVD spot wavers

Poly­gon [MATIC] rebound­ed strong­ly from its mid-range lev­el of $0.8656 on 25 May. The move fol­lowed Bitcoin’s [BTC] attempt to stay firm with­in the $26k zone. 

BTC breached the cru­cial sup­port lev­el of $26.6k amidst FOMC Min­utes, expos­ing it to more aggres­sive sell­ing, but bulls were fight­ing for recov­ery as of press time. 

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Nev­er­the­less, MATIC’s ral­ly faces a crit­i­cal range high that could stall bulls unless BTC reclaims the $26.6k level. 

Will sellers gain leverage at the range high?

Source: MATIC/USDT on TradingView

The Rel­a­tive Strength Index (RSI) crossed the medi­an 50-mark, reit­er­at­ing improved buy­ing pres­sure in the past few hours. Sim­i­lar­ly, the Chaikin Mon­ey Flow (CMF) edged high­er, con­firm­ing increased cap­i­tal inflows to the asset as of press time. 

The short-term uptrend momen­tum could boost MATIC to retest the range high/lower high around $0.89 – $0.90. A like­ly price rejec­tion at this lev­el to drag MATIC low­er, offer­ing short­ing oppor­tu­ni­ties at $0.8770, mid-range of $0.8656, or the range low/support zone of $0.84. 

Bulls could re-enter the sup­port zone if it doesn’t crack on a like­ly retest. The lev­el lines up with a bull­ish order block (OB) on H12, formed on 16 May, and anoth­er bull­ish OB on H2, formed on 14 May. As such, it could be a strong sup­port and demand zone for bulls to launch a recovery. 

A bull­ish break­out and ses­sion close above $0.91 (range high) will be an inval­i­da­tion. Such an upswing could see MATIC aim at $0.94. Bulls could wait for a retest and con­firmed uptrend at a range high before mak­ing an entry.

Shorts discouraged

Source: Coin­glass

How much is 1,10,100 MAT­ICs worth today?

Accord­ing to Coinglass’s liq­ui­da­tion data, over $24k in shorts posi­tions wrecked in the past four-hours alone. Long posi­tions suf­fered less than $200 worth of wreck­age, rein­forc­ing a short-term bull­ish momentum. 

How­ev­er, the Cumu­la­tive Vol­ume Delta (CVD), which tracks vol­ume and over­all sen­ti­ment, fal­tered in the past two days after ris­ing since 19 May. This could rein­force sell­ers couldn’t be over­ruled, espe­cial­ly upon the retest of the range high. 

Source: Coin­a­lyze