As of the time of writing, the recovery of Polygon (MATIC) has been somewhat hindered by bears. After a notable jump when Polygon dropped to $0.5089 on June 10, the recovery met resistance at $0.6894, which had been a support in the third quarter of 2022.
What Will Matic Price Be
Although Bitcoin (BTC) reclaimed $30,000 at the time of writing, it remained to be seen whether MATIC bulls could shatter the $0.6894 resistance and exceed the lower high of $0.7893 amid the improving market sentiment in broader crypto markets.
The 4-hour chart’s RSI and OBV recorded sharp increases, indicating growing buying pressure and demand for MATIC. Therefore, if BTC maintains the $30,000 region, it may likely rise above the $0.6894 resistance.
However, the 4-hour market structure can only turn bullish if MATIC passes beyond the low high level of $0.7893. This level also aligns with a trendline resistance (white) and may apply short-term selling pressure, especially if BTC retreats from $30,000.
Therefore, a short squeeze may occur at the urgent resistance of $0.6894, especially if BTC maintains and rises from $30,000. Yet, investors who short may try another reentry from $0.7893. Any movement above this level can confirm a stronger bullish intent for MATIC, and the next target in such a scenario could be the $0.9503 level.
Matic Investor Update
Despite strong bullish signals, the Open Interest (OI) rates for MATIC remained low. OI represents the total number of open contracts related to MATIC’s spot price at any given time. MATIC’s OI has stayed below $150 million since it fell below $0.8. A rise above $200 million could indicate a strong bullish trend in the futures market.
However, the exchange’s long/short ratio highlighted that more traders were shorting the asset in the futures market at the time of writing. Unless the difference between short and long positions decreases, the short-term atmosphere in the futures market may remain slightly bearish.
