Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- MATIC could not get past the intense selling pressure.
- Sentiment in the futures market remained bearish.
The near-term outlook for Polygon [MATIC] continued to look grim as concerns about its classification as a security by the U.S. Securities and Exchange Commission affected the price chart.
Read Polygons [MATIC] Price Forecast 2023-24
With Bitcoin [BTC] does not post significant gains after reclaiming the $26K price zone, any reversal opportunities for MATIC may be hampered.
Bearish momentum suppresses bullish rally
Source: MATIC/USDT on trade view
The fall of MATIC to the July 2022 level of $0.5274 marked a year low for the altcoin. Sellers took advantage of the strong bearish pressure since mid-April and the uncertainty surrounding MATIC to inflict huge losses.
Despite MATIC recovering from $0.5274 to $0.6500 between June 10 and June 13, selling pressure has hampered a sustained bullish rally.
The RSI remained below the neutral 50 and the OBV fell by 96 million over the past two days. Both indicators highlighted the significant bearish sentiment in the market.
With MATIC trading at $0.5988, a retest of the $0.5274 support level could lead to more aggressive selling, pushing MATIC towards the $0.5000 price zone. Conversely, an increase in volume could trigger a bullish pullback with $0.6500 – $0.7000 as a target for bulls.
How much are 1,10,100 MATICs worth today?
Spot CVD amplified possibility of further dips
Source: Coinalyse
A look at the Open Interest (OI) of Coin analysis on the four-hour time frame showed a massive drop on June 10. It experienced a slight rebound on June 16, before falling again. It showed the hesitation of market speculators to open new positions until regulatory concerns were clarified.
Similarly, the Spot CVD, which tracks trading volumes over time, continued to fall sharply. This indicated that the sales volume far exceeded the purchase volume, highlighting the lack of demand for MATIC in the futures market.