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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- MATIC could see a rise to $0.9
- However, a breakthrough beyond the range highs is not yet in sight
MATIC has recorded heavy losses in the past three days. The price fell from $0.945 to $0.811, a move of 14.21%. It was trading in the middle of a range, a zone that typically offers an unattainable risk-reward ratio for both bulls and bears.
The short-term trend for Bitcoin [BTC] points south after Monday’s losses, but the $42.3k level could change this outlook. Previously, AMBCrypto had reported that MATIC witnessed a spike in network activity.
MATIC saw a rejection at $0.93, just like a month ago
Source: MATIC/USDT on TradingView
The relevant range formation was highlighted in yellow on the 4-hour MATIC price chart. It rose from $0.72 to $0.962, with a mid-level of $0.841. The mid-range segment was important last month. For example, the early December rally saw multiple rejections from the $0.84 zone, which was finally overcome on December 8.
At the time of writing, the four-hour market structure was bearish. Additionally, an H4 session just below mid-range took place a few hours before press time. The RSI also fell below the neutral level of 50, signaling a shift in momentum.
Together they highlighted a bearish bias for the next 24 to 48 hours. On-Balance Volume has fallen over the past four days. In contrast, Chaikin money flow continued to rise above +0.05, indicating significant capital inflows into the MATIC market.
A strong red tilt from Liquidation Levels Delta could be important for traders
Source: Hyblok
The Cumulative Liq Levels Delta has been deep in bearish territory over the past 24 hours. This reflected the state of the market and showed that the number of liquidations of short positions was greater than that of long positions. In other words, a rise would hurt more market participants and provide more liquidity, making a rebound in MATIC prices likely.
Read Polygon [MATIC] Price forecast 2023-24
According to Hyblock estimates, the $0.87-$0.89 zone saw a wide range of liquidation levels and offered an attractive liquidity pool. According to AMBCrypto, a move north to $0.9 is likely in the coming hours before prices fall. If Bitcoin manages to climb above $42.3k, the chances of a bearish reversal for MATIC in the near term would decrease drastically.
