- Polygon [MATIC] depreciated 40%, from $1.57 to $0.94.
- Bulls must overcome a key obstacle at 38.2% Fib level ($1.1816) in order to hit the recent swing high.
- Funding rates were positive alongside surging open interest rates.
MATIC Price Analysis
Lower timeframe charts were bullish, while the daily chart was neutral at press time. Before getting a steady ground, Polygon [MATIC] depreciated 40%, from $1.57 to $0.94. Bulls got refuge at $0.94, fronting a recovery that hit a price ceiling at 50% Fib level ($1.2558). The second leg of recovery was on at the time of writing, but bulls must overcome a key obstacle to hit a recent swing high.
Bitcoin’s Impact on MATIC
The king coin, Bitcoin [BTC], retested its recent high of $26K, which could push most altcoins, including MATIC, to aim at their local highs too. However, if BTC faces price rejection at the $26K level, the rest of the altcoin market could enter into a retracement.
MATIC’s uptrend rally in the second half of January chalked an ascending channel. But a breach above the channel faced rejection at $1.57, setting MATIC to plunge 40%. So far, it has two legs of recovery. The first leg faced rejection at 50% Fib level ($1.2558), and the second leg, seen at press time, could attempt to restest the same level if bulls overcome the hurdle at 38.2% Fib level ($1.1816). But price rejection at the 50% Fib level could offer another correction with the 38.2% Fib level ($1