Disclaimer: The information provided does not constitute financial, investment, trading or other types of advice and is the opinion of the author only.
The USDT dominance metric is at 6.63% at the time of writing. It’s down from 7.33% just two days ago, down 9.7%. USDT dominance shows how much USDT is in the cryptocurrency market cap.
A decrease in this number indicates that USDT is being exchanged for crypto assets. In the last 48 hours, Bitcoin has [BTC] It managed to go from $18.6K to $21,000, an increase of 12%. ribbed [MATIC] It also posted gains over the same time period, and a buying opportunity may appear soon.
MATIC – 4 Hour Chart
On the four-hour chart, $0.9 has been a stubborn resistance area. The upper long candlestick at $0.927 earlier this week was not a good sight for the bulls. It showed that the price tried to rally to $0.9275 but was rejected.
A set of Fibonacci retracement levels (yellow) have been plotted for MATIC based on the movement from $0.722 to $1.05. It showed the 50% retracement level at $0.888. Just above that level, a bunch of resistance has been holding out for a week now. The Relative Strength Index (RSI) formed a hidden bearish divergence. This means that a slight decrease can be expected.
To the south, the cyan box at $0.75 highlights a bullish order block. Any dips below $0.849 can still be expected to find support there.
MATIC – 1 hour chart
The lower time frame chart showed that $0.86 is a liquidity area that the price could test soon. The 4 hour chart is indicating the possibility of a slight pullback. Indicators were strongly bullish on the hourly time frame, although the RSI was in the overbought territory.
By itself, it does not show that a reversal was imminent. Unbalanced Volume (OBV) has made some gains over the past few days, indicating that demand has been behind MATIC.
Inefficiency can be tested at $0.86 and likely to provide a buying opportunity. The stop loss can be set firmly at $0.84, or lower at $0.814.
Bitcoin was bullish as it surged above $20.8000, and further gains could emerge over the weekend. Polygon’s original token may follow suit. A pullback to $0.86 would probably be a good time to buy the asset. Ambitious traders can look to take profits at $0.92 the high earlier this week.