Polygon: MATIC could see some losses in coming days, answering why

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Polygon saw a drop in network fees and revenue in recent weeks, even though the daily active addresses had increased by a small margin. The report highlighted a downturn in the weighted sentiment also.

Read Polygon’s [MATIC] Price Prediction 2023-24

Ethereum led the rally for altcoins on the lower timeframes but MATIC was stuck just beneath a level that has acted as resistance for most of March. A Bitcoin breakout past $29.2k could see MATIC punch through this resistance.

Source: MATIC/USDT on TradingView

MATIC has formed a series of lower highs since mid-March when it formed a double top at the $1.25 level before sliding beneath the $1.15 mark. During this descent, MATIC fell beneath the $1.07 higher low and flipped the structure to bearish.

Since then, the bulls have not been able to push the price above $1.15 convincingly. At the time of writing, MATIC traded at $1.1498, and an upwards move could materialize in the coming hours. This was supported by the rising RSI, which showed strong bullish momentum in April.

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Another interesting fact for the bulls was that, in the past two weeks, each retest of the $1-$1.05 area saw the OBV climb slightly higher. On 4 April the OBV shot upward after the latest retest of the same support zone, which highlighted noticeable demand behind MATIC’s rally.

Source: Coinalyze

The predicted funding rate was positive, according to Coinalyze data, which agreed with the bullish thesis from the price action chart. Yet, the Open Interest has been in a downtrend since 28 April.

Even the MATIC rally