Polygon [MATIC]: Bulls fixated on a key swing high, is it even reachable

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

• Decrease timeframe charts had been bullish, whereas the every day chart was impartial at press time.
• Funding charges had been constructive alongside surging open rates of interest. 

Earlier than getting a gradual floor, Polygon [MATIC] depreciated 40%, from $1.57 to $0.94. Bulls received refuge at $0.94, fronting a restoration that hit a value ceiling at 50% Fib stage ($1.2558).

The second leg of restoration was on on the time of writing, however bulls should overcome a key impediment to hit a latest swing excessive. 

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The king coin, Bitcoin [BTC], retested its latest excessive of $26K, which may push most altcoins, together with MATIC, to purpose at their native highs too.

Nevertheless, if BTC faces value rejection on the $26K stage, the remainder of the altcoin market may enter right into a retracement. 

Can bulls push above the 38.2% Fib stage?

Supply: MATIC/USDT on TradingView

MATIC’s uptrend rally within the second half of January chalked an ascending channel. However a breach above the channel confronted rejection at $1.57, setting MATIC to plunge 40%. Thus far, it has two legs of restoration.

The primary leg confronted rejection at 50% Fib stage ($1.2558), and the second leg, seen at press time, may try and restest the identical stage if bulls overcome the hurdle at 38.2% Fib stage ($1.1816). 

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However value rejection on the 50% Fib stage may supply one other correction with the 38.2% Fib stage ($1.1816) and 23.6% Fib stage ($1.0899) as key assist ranges if the development goes south. 

Nevertheless, failure to shut above the 38.2% Fib stage may appeal to bears to sink MATIC to the 23.6% Fib stage ($1.0899) or the swing low of $0.94, particularly if BTC faces sharp retracement from $26K. 

The Relative Energy Index (RSI) and Accumulation/Distribution indicators confirmed sharp rises, indicating growing shopping for strain and accumulation previously few days. 

Nevertheless, Common Directional Index (ADX) declined, suggesting a probable consolidation or correction for MATIC. Furthermore, the 200 EMA moved sideways, reinforcing a probable value consolidation situation for the asset within the subsequent few days/weeks. 

Funding charges and OI elevated

Supply: Coinglass

As per Coinglass, MATIC’s funding charges remained pretty constructive since 10 March – a bullish sign witnessed because the first leg of restoration.

Furthermore, the open curiosity (OI) charge elevated farther from 16 March, marking the beginning of the second leg of restoration after BTC hit $26K. 

Learn Polygon [MATIC] Worth Prediction 2023-24

A surge in OI past $1.20 may imply a bullish sentiment able to overcoming the hurdle on the 38.2% Fib stage. However a drop in OI beneath $1.2 may complicate the restoration. 

Supply: Coinglass