Here’s why we are bullish on MATIC in the short term

MATIC is staging a remarkable resurgence that has not gone unnoticed in the market. Despite an initial setback, MATIC has displayed remarkable resilience, recapturing its macro uptrend line and breaking through significant resistance barriers.

TLDR

• MATIC reclaimed its macro uptrend line and broke through the $0.59 resistance.
• A bull flag formation led to a breakout, encountering resistance at $0.69.
• Positive funding rates indicate a strong long bias, with the open interest at relatively manageable levels.
• We consider MATIC a good buy for both short and medium-term investors, contingent on BTC's performance.

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

Technical analysis

After MATIC reclaimed its main macro uptrend line, it moved above the horizontal resistance of $0.59. It also formed a bull flag and managed to break out from that bull flag to the upside. MATIC has now found some resistance at the horizontal level of $0.69, which it has initially rejected. 

We feel that the current price is a good price for an entry for MATIC to move higher in the short term. If BTC can hold up, then we believe MATIC can achieve $0.75 in the near term and potentially reach $0.88 in the medium term. 

MATIC 1D

RSI and funding rates

The RSI is in a good spot here at 68, not overbought yet, but it has put in a bearish divergence. This is important to be aware of, but for now, this does not put us off MATIC going higher. 

Regarding funding rates, MATIC is very positive, more positive than most other coins. This suggests that there is a big bias to be long. However, the amount of open interest has increased but remains relatively low, and therefore, this isn’t too overheated currently. Again, this is something we need to be aware of, but not something that should alarm/frighten us in the near term. 

Cryptonary’s take

As long as BTC holds up, we feel MATIC can get further upside, with a medium-term target of $0.75 and then $0.88. 

Action

• MATIC could move higher from here to potentially test the $0.75 level.  
• We feel MATIC is a good buy for the short and medium term.