Bitcoin has recently broken through various levels of resistance and was trading above $45k at the time of writing. This has resulted in significant gains for numerous coins in the altcoin ecosystem, including MATIC. In other news, Polygon raised $450 million in cash through the private sale of its token MATIC, backed by Sequoia Capital India, with each token priced at $2 at the time of sale.
The price looked to create a range (yellow) between $1.495 and $1.75 over the last few weeks. In the last two days, the price attempted to break through the range highs twice.
In doing so, MATIC established a marker at $1.758; a breach of this level, followed by a retest as support, signaled a successful bullish breakout for MATIC.
Since then, the price has skyrocketed to the $2 round-number resistance level. In the previous month, the $1.9-$2.05 range served as support before shifting to resistance as Bitcoin plummeted below the $39k mark. Bitcoin has been positive in recent days, but it now finds resistance near the $46k level.
MATIC surged above the $1.92 barrier, signaling a strong bullish development. A retest of this area as support in the coming hours/days appears to be a buying opportunity. At $1.84, there was also some support.
While Bitcoin has seen significant demand in recent days, it is feasible that it will drop back to the $42k or perhaps $39k range in search of buyers. This could result in a significant drop in the price of altcoins.
With the price around $2.07, the RSI established a bearish divergence on the hourly, and MATIC has witnessed some selling pressure in the hours afterwards. The RSI remained above neutral 50, and the market structure remained optimistic.
This structure would be broken if the session closure fell below $1.75. This is an improbable scenario, considering the CDV has seen substantial buying volume in recent days.
30 May 2023
26 May 2023
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