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- Polygon has seen a sharp increase in open interest as speculators demand to participate in the upward move.
- Failure to break the weekly structure suggests that bears may be dominant here.
price ribbed [MATIC] The USD/CAD price rose last week and established a strong short-term uptrend. The local resistance at $0.43 was decisively broken and the bulls were strong enough to push the rally to the higher timeframe resistance zone at $0.58.
source: In the mass
This price action was accompanied by a doubling of open interest to indicate a bullish sentiment. Since then, the price has declined by 7.5% after reaching a local high of $0.5819, and open interest has declined along with it.
A Recent report He noted that many MATIC investors were still suffering losses — and that was true for short-term holders as well.
Market participants may hinder MATIC’s continued gains
source: In the mass
Local in and out data showed that 54.72% of addresses that bought MATIC between $0.456 and $0.62 were in the red.
This means that a price rally to the $0.552-0.569 area for example would trigger a wave of selling as underwater holders look to exit at breakeven.
To the south, the psychological $0.5 area is likely to see increased buying activity.
source: saint
AMBCrypto found that the daily active addresses metric has been trending downward over the past month. This indicates a decline in network adoption and demand for the token.
The rally in prices has sent sentiment to its highest level since May, but another measure has served as a warning to buyers. Inactive trading spiked sharply on Wednesday, August 21.
Typically, a wave of token movement on this range indicates a wave of selling activity in the near future. This selling wave may materialize soon and push the price lower.
Another reason why MATIC’s uptrend is exhausted
Source: MATIC/USDT on TradingView
The daily chart showed that the market structure was bullish after the recent move. The indicators were also in favor of the buyers.
Realistic or not, here you go. MATIC Market Cap in BTC conditions
But the $0.56-0.58 area served as a major weekly resistance where MATIC faced rejection in the last hours.
The market has shown its cards, and prices are likely to consolidate around $0.56-0.58 in the distribution phase before a move south towards $0.5 or $0.45.
