Coin Realm reports:
MATIC has retested the $0.5 mark as a resistance in its rebound, following a period of low trading volume. It is expected to fall to $0.448 or lower next week.
Like most other altcoins in the cryptocurrency market, Polygon [MATIC] is on a downward trend. It has also broken through a range like Bitcoin (BTC) did last week, making it difficult for bulls to prevent the bears’ advance.
The recent price plummet to $0.44 has caused significant distress to investors, as this is the lowest trading price for MATIC since June 2022.
In the past three months, buyers have been unable to defend the gains made earlier this year, indicating a long-term bearish sentiment.
MATIC’s bull market forced an 18% price rebound within 36 hours
After the crash on Friday, July 5th, MATIC bounced back to the psychological resistance level of $0.5, but with a small trading volume. In the past few hours of trading, MATIC bears have begun to push the price downward.
On the 12-hour chart, the RSI has been below the neutral 50 since early June, indicating that the bearish trend is developing. This has not changed. $0.543 and $0.518 are resistance levels where short-sellers may wait to reject in shorter time frames.
The OBV continues to show a downward trend, highlighting the strength of sellers since April. Coupled with the price trend, a move towards $0.44 and $0.393 may be brewing.
Funding rates have rebounded, but speculators remain cautious
On July 5th and 6th, funding rates dropped to negative values, indicating dominance by short-sellers. Since then, funding rates have risen above zero, but without displaying an optimistic sentiment.
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In the past few hours, due to MATIC encountering resistance at $0.5, open interest has also declined, suggesting that speculators prefer to stay on the sidelines rather than buy MATIC.
Spot CVD has been on a downward trend in July after experiencing some buying pressure in the second half of June. Overall, sellers are very strong, and the price may fall further.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other type of advice and is merely the author’s opinion.
