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- Bears could come back after price rejection at critical resistance level.
- Shorts have a 53.47% long/short advantage.
Polygon [MATIC] appeared to put behind its recent losses with a strong upward climb from a key support level. However, the bearish market structure limited last week’s bullish move.
Read Polygon [MATIC] Price Forecast 2023-24
While bulls were still active, Bitcoin’s was [BTC] sideways movement below $30,000 could give MATIC sellers more opportunities.
Bulls Remain Uptrend Despite Pullback
Source: MATIC/USDT on trade view
The 12-hour price chart revealed a continuation of MATIC’s uptrend, despite the bulls’ recent pullback. The rally from the $0.5274 support level made a series of higher lows before experiencing significant resistance at the $0.8503 level.
The price rejection at this level minimized the bullish belief to easily move past the resistance levels, despite the price continuing an upward trajectory. While bulls immediately found support at the critical $0.7414 support level to halt the retracement, indicators on the chart showed waning bullish momentum.
The Relative Strength Index (RSI) fell to the neutral 50, while the On Balance Volume (OBV) also decreased slightly. All things considered, it highlighted the drop in buying pressure and demand for MATIC.
A bearish retest of the $0.7414 support level could trigger an aggressive dip to the $0.6000 – $0.6500 area. However, bulls have a double-layer defense in the support level and a bullish trendline. A break below this bullish confluence would signal a clear shift in momentum.
A successful recovery for bulls at the support level could push the $0.9504 price level, which saw a lot of sideways price action between May and June.
The momentum is with sellers
Source: Coinglass
How much are 1,10,100 MATICs worth today?
Shorts registered their active presence by holding a large portion of the outstanding contracts for MATIC. A look at the exchange of long/short data from Mint glass on the 12-hour time frame revealed a 53.47% swing in favor of sellers.
This suggested that a retest of the $0.7414 level was likely and that price reaction to the level could tip the balance in favor of buyers or sellers.