Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
– The short-term market structure was strongly bullish after the move above $1.15.
– The rally might run into resistance very soon.
Polygon [MATIC] fell to the weekly low of $1.08 on 12 April, but was quick to recover. The token gained 10% in the past two days, breaching a short-term resistance level that the bulls have pushed against since 21 March.
Read Polygon’s [MATIC] Price Prediction 2023-24
A 12 April report highlighted some of the on-chain metrics that pointed toward the possibility of a rally for MATIC. However, the flow of tokens to exchanges also highlighted the possibility that sellers could fight back. The price charts showed where this selling pressure could arise.
MATIC climbed toward the H4 bearish order block
There were two zones of importance for MATIC in April. The bearish order block on the four-hour timeframe at the $1.23 region, highlighted by the red box, was the one closer to the price. The RSI pushed into overbought territory to underline the strong bullish momentum behind the token.
The OBV has been on an uptrend since 10 March, which pointed toward steady demand and showed that a breakout past the $1.25 mark was a likelihood in the coming weeks. Bitcoin’s rally past the $30k mark meant capital could soon be rotated into alts as well, which could provide the fuel for a breakout.
However, until a clean breakout occurs, MATIC holders from lower on the charts can look to book profits near the bearish order block. The other area of interest for buyers was the $1.04 local low, where a bullish order block was seen.
Traders can be prepared for the possibility of a range formation between these levels as well.
How much are 1,10,100 MATICs worth today?
MATIC liquidation data showed bears took a beating during the rally
Source: Coinalyze
The one-hour chart from Coinalyze showed that sentiment was strongly bullish. The price was in a strong short-term uptrend, and the Open Interest picked up from $155 million to $180 million. This massive increase pointed to the likelihood that speculators jumped into the market in an attempt to profit from the rally.
The liquidation data from Coinglass showed $1.57 million worth of short positions were liquidated on 14 April, with $2.08 million liquidated in the 24 hours before the time of writing.
