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Market Direction

MATIC flashes warning signs as bearish forces converge 

Updated: Jul 25, 2024
Published: Nov 24, 2023
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MATIC is currently in a bear flag with a breakdown target of $0.75 and then $0.69 if $0.75 can't hold.

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Despite a relatively healthy mechanics setup, we see decreasing volumes and a lack of Spot bids.

$0.69 and then higher from there?

TLDR

  • MATIC is in a bear flag pattern below key uptrend support.
  • Declining volumes signal a lack of spot bids underneath.
  • The relief rally is losing momentum ahead of a bearish breakdown.
  • It has a healthy mechanics setup overall, but technicals spell more pain.
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.
MATIC 4hr

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Technical analysis

  • MATIC is in a bear flag above its local horizontal support of $0.75.
  • MATIC is also beneath its main uptrend line.
  • A bear flag breakdown could take price to $0.75, and if that level can’t hold, then $0.69.
  • Note the declining volumes – that’s usually not positive for price. 
  • The local resistance is at $0.79.

Market mechanics

In terms of mechanics, it’s improved. 
  • The Open Interest dropped from $305m a week ago to $221m today. This is now back to healthier levels and less overheated than it has been. The excess leverage that we did see has now been flushed out. 
  • The OI-Weighted Funding Rate is at 0.01%, so it is very neutral. From a mechanics perspective, this indicates a positive set-up for MATIC, with Longs and Shorts in even balance. 

Cryptonary’s take

With MATIC being out of its main uptrend line, it is susceptible to further downside, particularly in its current bear flag setup. 

We see a test of $0.75 as very likely (assuming BTC doesn’t break out), and it is also possible that $0.69 can be tested soon. 

We like MATIC for the long term but would look for lower prices to begin DCA’ing. The target would be $0.65.



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