Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The H4 market structure faced a major obstacle at $0.698.
- Open interest rates were low, while sales volumes increased.
At the moment of writing, Polygons [MATIC] recovery hit crossroads that should concern bulls. It bounced remarkably after plunging to $0.5089 on June 10. But the recovery has hit a $0.6894 roadblock, which was previously a support in Q3 2022.
Read Polygon [MATIC] Price prediction 2023-24
although Bitcoin [BTC] Recovered $30,000 at time of writing, it remained to be seen if the MATIC bulls would break through the $0.6894 roadblock and climb above a lower high of $0.7893 amid improved market sentiment in the broader crypto markets .
Can bulls zoom past $0.6894 and $0.7893 obstacles
Source: MATIC/USDT on TradingView
On the 4-hour chart, the RSI and OBV registered sharp spikes indicating increased buying pressure and demand for MATIC. Therefore, a cross above the $0.6894 resistance was likely if BTC held the $30k zone.
However, the H4 market structure will turn bullish only if MATIC moves beyond the lower high at $0.7893. The level also corresponds to a trendline resistance (white) and could put selling pressure in the near term, especially if BTC falls back from $30,000.
Therefore, a short squeeze could occur at the immediate $0.6894 resistance, especially if BTC maintains $30k and rises. But short sellers could make another attempt to re-enter at $0.7893.
Any move above $0.7893 will confirm further solid bullish intent for MATIC, and the next target will be $0.9503 in such a scenario.
Open interest rates muted
Source: Coinglass
Despite strong bullish sentiment, MATIC open interest rates (OI) remained low. The OI refers to the total number of open contracts related to the spot price of MATIC at a given time.
Since falling below $0.8, MATIC’s OI has remained muted below $150 million. A cross above $200 million indicates strong bullish sentiment in the futures market.
How many Worth 1.10.100 MATICs today?
However, the exchange long/short ratio highlighted that more traders were shorting assets on the futures market at the time of writing.
Unless the spread between short and long positions narrows, short-term sentiment in the futures market could remain mildly bearish.
Source: Coinglass