MATIC falls to bullish order block – can a rally ensue?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
The crypto market has witnessed volatility in both directions over the past month. Bitcoin [BTC] saw a drop from $24k to $21.6k in early February, followed by a rally to $25.2k in mid-February. The fate of the native token of Polygon [MATIC] was more volatile, but its trend remained upward on the higher timeframes.
Read Polygon’s [MATIC] Price Prediction 2023-24
An analysis of lower timeframe charts showed bearish momentum was dominant. However, MATIC was headed into a zone of support on the charts. If Bitcoin saw bulls take control, MATIC could perform well over the next week as well.
Source: MATIC/USDT on TradingView
The order block was highlighted in cyan. Since 2 February, the $1.17-$1.2 area acted as strong support for MATIC. On 13 February, the price descended beneath this area to reach as low as $1.136 but quickly rebounded.
The strong move upward marked it as a significant zone. The slow retracement over the past two weeks gave the buyers time to accumulate before the next push higher. Hence, over the next few days, a bullish reversal can be expected based solely on price action.
Regardless, the momentum indicators continued to show stiff bearish pressure. The 21 and 55-period moving averages showed downward momentum was in force, while the RSI was also beneath neutral 50. It has been beneath neutral 50 since MATIC’s drop beneath the $1.42 mark.
Hence, risk-averse traders can wait for a definite shift in trend before buying. Meanwhile, the CMF continued to climb upward over the past few days to show a flow of capital into the market.
Source: Coinalyze
The one-hour chart on
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