What’s Next for Polygon [MATIC] as it Approaches Range Lows?

Polygon [MATIC] Approaches Range Lows: What Traders Can Expect Next

Polygon [MATIC] enjoyed a fantastic start to the year, recording a gain of 108.9% between 1 January and 18 February. However, a significant correction flipped its market structure from bullish to bearish. Prices traded sideways between mid-March to mid-April before a Bitcoin correction sent MATIC on another downward spiral.

MATIC Stuck in a Tight Spot

The indecision between buyers and sellers has confined MATIC to a tight range for the past three weeks. It has traded between the $0.950 support level and $1.028 resistance level on the four-hour timeframe. The bullish order block’s confluence with the $0.950 support level just below it has served as a rallying point for bulls. Price has bounced off the support level four times in quick succession to stem the selling pressure. However, the RSI and CMF both pointed to weakening buying pressure at that level. The RSI has stayed under neutral 50 over a two-day period while the CMF was at -0.15 as of press time. A four-hour candle close below the $0.950 support level could lead to a bearish breakout for MATIC with $0.835 as the target for bears.

Could a Bullish Reversal be on the Horizon?

A look at key on-chain metrics suggested MATIC buyers might not be giving up yet. Data from Santiment showed a decline in active addresses and an increase in the total number of holders. This showed that an accumulation could be ongoing for Polygon’s native currency. Funding rates have been consistently positive over the past 14 days, indicating that demand existed for MATIC, even at press time. The spot CVD also experienced an uptick. A bullish reversal will be hugely dependent on the confluence of the bullish order block and support level at $0.950 holding out once again. In summary, Polygon [MATIC] has been trading in a tight range between the $0.950 support level and $1.028 resistance level. The RSI and CMF both suggest a weakening buying pressure, and a four-hour candle close below $0.950 could lead to a bearish breakout. However, key on-chain metrics suggest that there is still demand for MATIC, and a bullish reversal may be on the horizon.