Polygon (MATIC) Bulls Forced an 18% Price Bounce Over 36 Hours

Polygon [MATIC] was in a downtrend like most other altcoins in the crypto market. It too saw a breakdown beneath a range like Bitcoin [BTC]

Polygon [MATIC] has had a rough 2023. After rallying to highs of $1.04 in early 2023, the bears took over and drove prices down by 60%. This bearish momentum saw MATIC reach lows of $0.44 on the 5th of July.

At the time of writing, MATIC traded at $0.48 after recovering from lows of $0.44. The bulls managed an 18% price bounce from the lows over 36 hours. However, the trading volume remained low as prices approached the $0.5 resistance.

After a brief bullish period in late May and early June, MATIC bulls failed to keep prices above $0.6. This saw the bears gain strength and drive prices down to multi-month lows.

Now, as prices attempt to recover, the bulls need to contend with lower prices, thin trading volume, and strong bearish pressure. How will MATIC fare?

MATIC bulls need to overcome key resistance levels

After the sharp drop on Friday the 5th of July, MATIC bounced to the $0.5 psychological resistance level. However, the trading volume was slim. The past few hours of trading saw MATIC bears begin to push prices downward.

On the 12-hour chart, the RSI has been below neutral 50 since early June, signaling a bearish trend in progress. This has not changed. The $0.543 and $0.518 are resistance levels that lower timeframe short sellers could wait for a rejection from.

The OBV continued to trend downward, highlighting the strength of the sellers since April. Combined with the price action, a move toward $0.44 and $0.393 could be brewing.

Bearish momentum is still strong, but bullish signs are emerging

The funding rate fell into negative territory on the 5th and 6th of July, showing short sellers were dominant. Since then the funding rate has crept back above zero but did not show bullishness.

The Open Interest also slid downward over the past few hours as MATIC met the $0.5 resistance, showing speculators preferred staying sidelined instead of buying MATIC.

The spot CVD has trended downward in July after witnessing some buying pressure in the latter half of June. Overall, the sellers are overwhelmingly strong and more price losses are likely.

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