Polygon (MATIC) enthusiasts remain undeterred as they continue to push the price of the digital asset higher despite a prevailing bearish market structure, While the higher timeframe structure paints a bearish picture, buyers have been steadily driving prices upwards.
At the time of writing, MATIC is priced at $0.541671 on CoinGecko, marking a 2% gain in the past 24 hours and a noteworthy 4.5% increase over the course of a week.
Derivatives Market Wary Despite MATIC’s Resilience
Market participants in the derivatives sector have, however, approached MATIC’s recent bullish moves with caution. Data provided by Coinalyze reveals a consistent dip in Open Interest, even in the face of decent price gains. This dip suggests a lack of conviction among traders regarding MATIC’s price rebound.
Source: Coinalyze
However, there are underlying indicators that may paint a more optimistic picture for Polygon, according to price analysis. The Funding Rate has remained positive since last week, and the Spot CVD (Cumulative Volume Delta) has maintained its upward trend. These factors hint at a growing demand for MATIC, which could play a pivotal role in supporting a sustained bullish surge.
Moreover, buyers found renewed enthusiasm as Bitcoin (BTC) made a swift climb to the $27,000 price range, igniting fresh bullish sentiment.
Technical Signals Point Toward Growing Confidence
A closer look at the technical indicators shows that buying pressure has been gradually increasing. The Relative Strength Index (RSI) currently stands at 58, underscoring the rising bullish sentiment among MATIC investors. Similarly, the Chaikin Money Flow (CMF) has flipped positive with a reading of +0.04, indicating an influx of capital into the asset.
MATIC market cap at $5 billion. Chart: TradingView.com
Examining the 12-hour chart for MATIC reveals a conservative yet sustained bullish approach to the price rebound. These signals collectively point towards a growing bullish confidence in the short term. While the broader market may appear bearish, MATIC enthusiasts seem determined to defy the prevailing sentiment and drive the digital asset’s value higher.
Polygon (MATIC) buyers have remained resilient in the face of a bearish market structure. The digital asset’s price has shown steady progress, and key indicators suggest that demand for MATIC remains intact.
With growing buying pressure and positive technical signals, MATIC enthusiasts may have reason to believe that the tide could turn in their favor, despite the overarching market conditions. Investors will be closely watching the coming days to see if this bullish momentum can be sustained.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from YouWorkForThem
