• MATIC’s descent to the July 2022 level of $0.5274 marked a year-low for the altcoin
• Despite rebounding from $0.5274 to $0.6500 between 10 June and 13 June, selling pressure has hampered a sustained bullish rally
• With Bitcoin not making any significant gains after reclaiming the $26K price zone, further reversal opportunities could be impeded for MATIC
MATIC Price Analysis
MATIC experienced a sharp decline to the July 2022 level of $0.5274, which marked a year-low for the altcoin. Despite a rebound from $0.5274 to $0.6500 between 10 June and 13 June, the selling pressure has hindered a sustained bullish rally.
Bearish Momentum Suppresses Bullish Rally
The short-term prospects for Polygon [MATIC] have continued to look grim due to concerns over its classification as a security by the US Securities and Exchange Commission (SEC). Furthermore, with Bitcoin [BTC] not making any significant gains after reclaiming the $26K price zone, any reversal opportunities could be impeded for MATIC.
MATIC’s bearish momentum has been reflected in indicators such as RSI remaining under neutral 50 and OBV declining by 96 million over two days.
With MATIC trading at around $0.5988, there is potential that it may retest its support level at around $0.5274 which could push it towards the price zone of $0.5000.
Open Interest and Spot CVD Point To Further Dips
A look at Open Interest (OI) on Coinalyze showed huge declines on 10 June followed by slight upticks on 16 June before falling again – revealing hesitation by market speculators in opening new positions until more clarity emerged over regulatory concerns.
Spot CVD also showed steep declines – indicating that selling volumes were far higher than buying ones – highlighting lack of demand for MATIC in futures market.
In conclusion, despite some early signs of recovery, MATIC continues to face intense selling pressure due to regulatory uncertainty and its associated risks as well as Bitcoin’s weak performance which further impedes any potential reversals or rallies in price.