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