MATIC falls to key support: Are short sellers running out of opportunities?

Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.

• MATIC retested 50% Fib help at $1.3531.
• Countering metric alerts urged warning.

Polygon [MATIC] has reached a key help stage at $1.3531, which might give bulls hope for a rebound. Nevertheless, there have been conflicting metric alerts, and buyers might get readability on Bitcoin’s [BTC] worth motion quickly.

Learn Polygon’s [MATIC] Worth Prediction 2023-24

Can the 50% Fib stage maintain?

Supply: MATIC/USDT on TradingView

MATIC’s momentum slowed down after breaking under the ascending channel (white). Nevertheless, it discovered stable help at $1.1381 and recovered. Final week, it gained 38% however was rejected at $1.5681. After that, a worth correction eroded nearly half of final week’s achieve.

Nevertheless, bears might get extra alternatives if BTC falls under $23.86k. They may quick MATIC and purchase again on the 38.20% or 23.60% Fib stage. However bears ought to solely make strikes if MATIC closes under the 50% Fib stage.

Alternatively, bulls might goal the 78.60% Fib stage of $1.4761 if the 50% Fib help stage holds. Nevertheless, near-term bulls should overcome the impediment on the 61.80% Fib stage to advance upward.

The Relative Energy Index (RSI) was 32, displaying a particularly bearish construction and momentum. Furthermore, the Chaikin Cash Circulate (CMF) was under the zero line, reinforcing the leverage of the bears. Though the CMF has been rejected 3 times, a break above the zero line would underline the bulls’ hopes for a restoration. 

MATIC’s open rate of interest declined, however weighted sentiment remained constructive

Supply: Coinglass

In accordance with Coinglass, MATIC noticed a major drop in open curiosity (OI). OI fell from over $300 million on Saturday to simply over $250 million on the time of writing. That’s about $50 million in outflows within the futures market, a bearish sign.

Is your portfolio inexperienced? Take a look at the MATIC Revenue Calculator

In distinction, Santiment reveals MATIC reveals constructive weighted sentiment with no change in demand since Saturday. Though this might give bulls hope for restoration if demand for MATIC will increase at discounted costs, the falling OI might undermine sturdy restoration momentum. Due to this fact, warning must be noticed.

Particularly, buyers ought to monitor the efficiency of BTC. If BTC regains the $25,000 stage, MATIC might get better strongly. Nevertheless, a break under $23.86k might present additional alternatives for the bears.