Here’s what might temper MATIC buyers’ expectations this week

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

• MATIC’s golden cross on the daily chart reignited the chances of a trend reversal
• The crypto’s social dominance declined whilst its Open Interest unveiled a bullish edge

Recent buying efforts pushed Polygon [MATIC] again towards the upper band of the Bollinger Bands (BB) as it found solid buying pressure to test its $1.2-resistance.

Here’s AMBCrypto’s price prediction for Polygon [MATIC] for 2023-24

After slightly slowing down at this resistance range, MATIC flashed mixe

d signals on its chart. The sellers could seek to curb the string of green candles to overturn the extended bull run.

At press time, MATIC was trading at $1.1944, up by 4.39% in the last 2

4 hours.

The token broke into high volatility

Source: TradingView, MATIC/USDT

Since breaking above the nine-month trendline support (white, dashed), MATIC has been on a quest to find fresher highs. As a result, the rising wedge breakdown too was undermined by the 20 EMA (red) and the $0.87-baseline.

MATIC’s solid double-digit growth in the last four days aided the alt in retesting the $1.1-$1.2 resistance range near the upper band of the BB. With the 20 EMA crossing above the 200 EMA, the buyers reaffirmed their long-term bullish intentions.

Any decline from the immediate resistance could find resting grounds at the $1.02-level followed by the 20 EMA (red) in the $0.94-$0.97 range. A potential/ immediate recovery from this support could present buying opportunities. 

The first major resistance level would continue to be in the $1.2-zone. Any close above this barrier could fetch impressive gains while pushing MATIC toward the $1.4-zone.

The Relative Strength Index (RSI) stood in the overbought region while projecting a one-sided bullish edge. A plausible decline below the 70-mark in the coming sessions could ease the buying pressure.

Decreased Social Dominance alongside a spike in Open Interest

Source: Santiment

Since mid-August, MATIC’s social dominance has seen a consistent decline on its charts. The metric saw a significant pull in the last four days while the price action diverged to register slight gains. The buyers should consider the possibility of a corresponding price dip, especially given the altcoin’s sensitivity to the metric.

Source: Coinglass

Nonetheless, the total MATIC Futures interest across all exchanges saw a nearly 13.7% incline over the last 24 hours. The price action marked an over 4% hike during the same time. These readings highlighted positive investor sentiment in the Futures market.

Finally, investors/traders must keep a close eye on Bitcoin’s movement as MATIC shares a relatively high correlation with the king coin.   

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