MATIC bulls are hoping for a bounce next week, and here’s why

warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.

Polygon plans to incorporate a massive increase in transaction speeds and lower fees. In a recent blog post, the team revealed their experimental results from using different block sizes.

Could these pipeline improvements have a positive impact on price? Price charts have shown that the MATIC bears have had the upper hand over the past week, but buyers may be forced to rebound towards $1 in the coming weeks.

Matic – 1 Day Chart

Source: MATIC / USDT on TradingView

A bullish order block is seen in the $0.8 area (highlighted in cyan). It shows a bearish candle followed by an upward move to $0.9 and $1.03. The drop followed by a breakout in the ascending structure meant that $0.88 – $0.76 It is a strong support area for MATIC.

At the time of writing, the token is trading at $0.809 and it could drop as well. Momentum has been somewhat bullish in recent weeks, but the long-term trend has not been bullish.

Since mid-July, the price has been trading between $0.75 and $1. The Fibonacci levels (in yellow) showed that $1.03 and $0.86 were important levels to pay attention to.

Could this change in the coming weeks? If Bitcoin sees a sharp drop again, it is very likely that MATIC will follow suit and break below $0.76. Until the token really breaks below, it offers a buying opportunity.

Logic

MATIC bulls are hoping for a bounce next week, and here's why

Source: MATIC / USDT on TradingView

The RSI fell below the neutral level 50 and retested the same resistance level. In recent months, the 57 and 40 levels have acted as support and resistance. This was not surprising, as is usually the case near 40 and 60.

The conclusion from the RSI was that the momentum is in favor of the bears, but the overall picture is not bearish yet. That would require a drop below the 40 mark. The last time the RSI was below 40 was back in June.

CMF and OBV showed some buying pressure in September. OBV crept up a bit, while CMF managed to climb past +0.05 to determine the significant capital inflow into the market.

OBV has been in an uptrend since July but last month it has only moved sideways. Therefore, buying and selling pressures are in equilibrium with each other.

conclusion

Neither the bulls nor the bears had a strong grip on the markets at the time of writing.

The fight was centered inside $1.03 and $0.76.

Over the next few days, a test of the $0.8 support area may be followed by a rally again above $0.86. This is likely to push MATIC higher towards $1.03, with some resistance at $0.94 as well.

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