MATIC Bullish Sentiment Rises: Short Position at $1.03-$1.05 Range
• Polygon [MATIC] has seen bullish sentiment rise in recent weeks, with on-chain metrics and price action showing strong demand.
• MATIC has formed a ten-day range between $0.92 and $1.03, with the upper boundary at $1.05 being a point of resistance.
• Futures market participants remain bullish, and traders can look to short MATIC in the $1.03-$1.05 range with profit targets at $0.98 and $0.92.
Polygon [MATIC] has seen bullish sentiment rising in recent weeks, with on-chain metrics and price action showing strong demand behind the rally. The native asset reached a new all-time high of $1.17 earlier this month, before correcting lower and forming a ten-day trading range between $0.92 and $1.03. The upper boundary of this range at $1.05 has posed stern resistance, with no four-hour session closing above it in the past two weeks.
The $1.05 range has seen many candlewicks, but the lack of a session close above it indicates that traders should continue to trade within the range for now. The lower extreme of the range coincides with a bullish breaker from early December on the 12-hour chart, and Fibonacci retracement level, making it a strong support in the near term. This support is further strengthened by the RSI and OBV forming lower highs in the past week.
Futures market participants remain bullish on MATIC, with open interest and fund flows pointing to further upside. The open interest on Binance Futures has risen by more than 16% in the past week, with long positions increasing by nearly 10%. This indicates that traders are looking to benefit from further upward momentum.
Traders can look to enter short positions in the $1.03-$1.05 range, with profit targets at $0.98 and $0.92. However, it is important to note that a breakout above $1.05 is still possible, and traders should be mindful of the risk of a long squeeze if the liquidity pocket at $1.05 is breached.