MATIC: Will price rebound from the range low?
Journalist
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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- MATIC fluctuated between $0.50 and $0.54 in the past two weeks.
- Accumulation spiked in August, and sell pressure eased.
Polygon [MATIC] has retreated to a perfect position for swing traders if Bitcoin [BTC] recovers from recent losses. MATIC prices fluctuated between $0.50 and $0.54 in the past two weeks.
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Meanwhile, BTC finally gave up on the $26.4k support and extended retracement to the range-low as expected. BTC’s narrow consolidation at the range-low could be likely as players wait for the SEC’s possible green light on Ethereum [ETH] ETF in October.
Will MATIC rebound from the range-low?
Source: MATIC/USDT on TradingView
MATIC’s price action since 10 September chalked a parallel channel, orange. The range-low was aligned with an H4 bullish order block (OB) of $0.505 – $0.512 (cyan) and could cement the area as a bullish zone.
So, a strong rebound at the range-low was likely, especially if BTC doesn’t drop below its range-low of $25.8k. The immediate roadblocks for bulls are the mid-range of $0.5260 and the 50-EMA (Exponential Moving Average) of $0.5245. A move above the mid-range could set MATIC for the range-high ($0.5460).
However, the RSI has been stuck in the low range since 21 September, underscoring selling pressure intensified over the same period and could delay the recovery. Any breach below the range-low could ease at $0.49 or $0.45.
Even so, the impressive northward movement of the CMF reinforced substantial capital inflows into MATIC markets.
Accumulation improved, but…
Source: Santiment
MATIC’s network-wide accumulation improved, as shown by the steadily rising 90-Mean Coin Age (yellow). The accumulation phase occurred as sell pressure eased towards the end of August, as shown by the declining Supply on Exchanges.
How much are 1,10,100 MATICs worth today?
However, network growth took another deep plunge at press time, denoting network traction dropped as new addresses declined.
The development could further delay a strong rebound at the range-low and call for close tracking of BTC price action.
