By Franklin Smith
- Economists expected rejections at $0.92 for MATIC, but it didn’t emerge.
- The market structure overturns bullish again, whereas the token retested mid-range as support.
The USDT Dominance index fell to 7.1% from 8% between October 21 and 26. That came after Bitcoin pumped to $20.8K from $19K – a move that welcomed bullish confidence in the marketplace.
Meanwhile, MATIC exhibited a bullish stance as the alt flipped the markets to bullish before the highlighted pump. Moreover, Polygon bulls had fuel left after the optimistic sentiment within the previous two weeks.
Mid-Range Retest Can Witness a Leg High
The asset’s price has hovered between $0.72 and $1.03 since mid-July, with $0.88 as mid-range. A revisit to the range’s low early this month saw MATIC record impressive gains. That showed how liquidity around the range lows saw a test, and Polygon bulls targeted a test to the sellers at the range’s other end.
The A/D indicator didn’t witness a massive trend within the past few months, reinforcing the notion of a range setup. Meantime, the Relative Strength Index swung between 30 and 70, though a long-term trend wasn’t in motion. Moreover, the oscillation supported the idea of a range.
Over the last few days, the bullish market construction breaks on the twelve-hour chart welcomed an uptick toward the bearish order block at $0.93. Bulls surprised the market and broke beyond this order block, emphasizing bullish intent.
The alt has also tested the mid-range as support. Thus a ‘buy’ opportunity emerged. Only a session closing beneath $0.876 would invalidate this idea. And buyers might take profits at the $1 – $1.05 range amidst an upside move.
MVRV Rises to Positive Region, Selling Strength Soon?
Meanwhile, the 30d MVRV has failed to surge beyond the 14% level since mid-August. The previous few days witnessed the MVRV soar to 13.5% before a dip, though it stayed inside a positive region. Remember, a climbing MVRV might trigger more market players to sell their Polygons at a profit.
That might halt or slow rallies. However, this index wasn’t a measure of trend reversals. The exchange supply metric has plummeted since late June. That indicated market participants didn’t move massive token amounts to the exchanges.
Such a move would have signaled an upcoming selling wave. The evaluation showed a possible action toward $1 – $1.05. As this level represented a 3-month range, shorting opportunities might emerge around the range peaks.
Editorial credit: photo_gonzo / shutterstock.com
HeraldSheets.com produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.