Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Since the end of January, Bitcoin Dominance has been on the rise. From 39.4% to 43.58% as of writing, this dominance statistic meant capital was flowing out of altcoins and into Bitcoin. In addition, this metric appeared to be moving up, meaning that capital flow was likely going from the altcoins toward Bitcoin. For MATIC, the downward trend on the price charts has been pronounced since the rejection at $2.42.
The 12-hour time frame showed that despite the strong gains from the $1.3 and $1.4 support levels over the past three weeks, the overall trend was down. The price saw a series of lower highs and has also broken below the near-term support level of $1.4 in recent days.
The $1.25-$1.35 has historically been a place where long-term investors were interested in buying MATIC. In October, the $1.16 – $1.26 area saw strong demand fueling an uptrend to $2.22 and $2.95 after a retracement.
Similarly, the area immediately south could see the trend change for MATIC. Well, that wasn’t the case yet. Therefore, risk averse investors may want to wait for a trend shift before buying MATIC. More aggressive investors can buy at the USD 1.3 and USD 1.16 support levels.
The RSI stood at 38.13 and moved lower. Selling pressure has only increased in recent days as seen when the USD 1.4 support broke. This could allow MATIC and its RSI to dive lower on the chart.
Both the CDV and OBV indicators showed salespeople were in the driver’s seat. The OBV was also about to dip below a recent low. Such a move would bolster the bearish outlook for MATIC. The CVD has shown sellers to be strong since mid-February, with a weak rally in early March.
The market structure remained bearish even as MATIC approached a demand zone. Momentum and sales volume pointed to a further downside, according to the indicators. The support levels at $1.3 and $1.16 could see a bounce. However, it was not yet clear that a trend shift would occur. $1.54 remains a strong local resistance level to beat for the bulls to regain control of the selling.