warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.
- A drop of $0.92 was expected for MATIC, but it did not materialize
- Market structure turns bullish again, middle range is being retested as support too
From October 21 to October 26, the USDT dominance metric decreased from 8% to 7.1%. This was a direct result of Bitcoin pumping from $19,000 to $20.8000, giving crypto market participants bullish confidence.
This is the AMBCrypto price prediction for Polygon [MATIC] 2022-23
On the other hand, MATIC already had a bullish outlook as it broke the market structure higher before the aforementioned pump. After the positive sentiment of the past two weeks, Matic’s bulls likely had more fuel in the tank.
Despite the bearish order block at $0.92, a retest of the middle record may see an upward movement
Since mid-July, the price has been trading in a range of $0.72 to $1.03, with a mid-term value of $0.88. Earlier this month, a return to the lows of this range saw good gains recorded.
This development highlighted how liquidity was being tested near the lows of the range and the MATIC bulls were on a mission to test sellers at the other end of the range.
The A/D indicator has not seen a strong trend in recent months, which reinforces the idea of a range formation. At the same time, the RSI also fluctuated from 30 to 70, although the long-term trend was not moving. This oscillation also supported the idea of distance.
The breakout of the bullish market structure on the 12-hour chart over the past few days has followed a push into the bearish demand block at $0.93. The bulls made a surprise breakout and broke through this order block to confirm the bullish intention.
The mid-range value was also tested as support, so there was a buying opportunity on the horizon.
Nullifying this notion may be to close the session below the $0.876 mark, while buyers can look to take profits in the $1 to $1.05 range in case of a rally.
MVRV Rising To Positive Zone, Could It Show Selling Pressure Soon?
The 30-day MVRV has not been able to rise above the 14% mark since mid-August. In recent days, MVRV jumped to 13.5% before pulling back, although it remains in positive territory. The idea was that with the rise of MVRV, more and more players in the market could be tempted to sell MATIC at a profit.
This can slow or stop the rise. This measure was not in itself a measure of trend reversal. Supply in stock exchanges was in decline at the end of June.
This showed that the token was not transferred to exchanges in large quantities. If so, it would signal a selling wave around the corner.
The analysis showed that a move to $1 – $1.05 was likely. Given that this has been a three-month range, a selling opportunity is likely to emerge near the tops of the range.