• MATIC recently broke out of a short-term range formation and moved above the 20-EMA.
• Bulls must clear the 100-EMA hurdle to gain more leverage and target March lows.
• Open interest rate dropped drastically at end of February, but has since fluctuated.
MATIC Breaks Out of Short-Term Range Formation
Polygon [MATIC] recently broke out from its short-term range formation and moved above the 20-EMA, indicating that near-term bulls have the upper hand. However, bulls must still clear the 100-EMA hurdle in order to gain more leverage and target March lows.
Fair Value Gap (FVG)
The impulse move left a fair value gap (FVG) within $0.8651 – $0.8838 zone (white). This could act as strong support for bulls, or bears may crack it before continuing with the uptrend. The Relative Strength Index (RSI) retreated slightly but was still within the upper ranges, indicating that buying pressure has eased somewhat. Meanwhile, Chaikin Money Flow (CMF) increased but hovered near zero mark, highlighting wavering capital inflows.
Open Interest Rates
According to Coinglass data, MATIC’s open interest rate dropped drastically at end of February and has since fluctuated over time. This could suggest a neutral position in futures market for MATIC investors so far this year – with neither buyers nor sellers in control of price action yet.
Retest March Lows?
In order for bulls to retest March lows and reach key Q1 support level of $0.9441, they need to be able to break through 100-EMA resistance at press time ($0.9051). If unsuccessful in doing so, it is likely that MATIC will retreat back into FVG zone before continuing its uptrend or even retesting its range lows at $0