MATIC offers a risky buying opportunity at $0.79, should traders take it

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion

• MATIC was beneath each the 61.8% and 78.6% Fibonacci retracement ranges
• Whereas this confirmed additional losses had been probably, there was an opportunity costs might see a bounce

Bitcoin traded above the $16.6k assist stage over what may be thought of a weekend of lowered volatility and quantity. MATIC has been in a downtrend on decrease timeframes after the rejection at $0.928 on 14 December. It has assist at $0.75 and $0.68 and faces stiff resistance on the $0.82 and $0.95 ranges.

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

On-chain metrics and technical indicators highlighted bearish sentiment and outlined that consumers could be buying and selling in opposition to the upper timeframe pattern.

The 12-hour bullish order block served nicely over the weekend however bulls wish to see $0.822 overwhelmed

Supply: MATIC/USDT on TradingView

Primarily based on the transfer from $0.686 to $1.3, a set of Fibonacci retracement ranges (yellow) was drawn. MATIC fell beneath the 78.6% retracement stage at $0.822, however it traded inside a 12-hour bullish order block from mid-October. The technical indicators confirmed sellers had been dominant.

The On-Steadiness Quantity (OBV) has been in a downtrend because the first week of November. This meant promoting quantity has been dominant in latest weeks. The Relative Power Index (RSI) additionally stayed under impartial 50 for a great chunk of the previous month. It was unable to ascend previous 60 when MATIC bulls grappled with the $0.95 resistance.

Therefore, shopping for the token at these costs was dangerous. Nonetheless, a transfer again above $0.822 and a subsequent retest can act as a set off for the bulls to enter longs. Their revenue targets embody $0.86 and $0.92, with $0.95 being an optimistic goal. If MATIC slid again beneath $0.77 this concept could be invalidated.

Imply coin age and MVRV decline sharply

Supply: Santiment

Since October, the 90-day imply coin age has been falling to indicate elevated MATIC motion between addresses. On the similar time, the 30-day Market Worth to Realized Worth (MVRV) took a tumble and has been in detrimental territory since November. This confirmed short-term holders had been holding the asset at a loss.

The age consumed metric noticed giant spikes on 13 December which meant a considerable amount of beforehand idle tokens had been on the transfer. Shortly thereafter, MATIC fell from $0.915 to $0.8, therefore the elevated motion probably signified distribution.