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- MATIC’s price hit another low amidst declining trading volume.
- Longs suffered severe liquidations over the past day.
Bitcoin’s [BTC] sharp drop from $25.8k to $25.1k over the past day saw altcoins register significant dips. The sustained selling pressure on Polygon [MATIC] had kept it around the $0.55 price zone, despite its soaring network activity.
Read Polygon’s [MATIC] Price Prediction 2023-24
Yet, MATIC’s price dropped another 8.8% to take price to the June low of $0.5 with the possibility of further dips.
Sellers took advantage of low volume to break critical support level
Source: MATIC/USDT on Trading View
The Visible Range Volume Profile highlighted MATIC’s price action in relation to its trading volume.
The daily timeframe showed that the Value Area High (VAH) and Value Area Low (VAL) sat at $0.101 and $0.539, respectively. The Point of Control (POC) at $0.667 lay close to the VAL.
The POC is the area with the highest trading volume, and the strong bearish movement on 15 August revealed the dominance of sellers.
With the VAL acting as a dynamic support for bulls, sellers struggled to break below the level from late August to early September. However, the break below the VAL on 10 September signaled an extension of the bearish dominance.
This saw the Relative Strength Index (RSI) drop into the oversold zone to highlight the absence of buying pressure. Similarly, the On Balance Volume continued to dwindle, as buyers took flight.
Long liquidations saw buyers retreat in the futures market
Source: Coinglass
How much are 1,10,100 MATICs worth today?
Data from Coinglass revealed that longs suffered liquidations worth $456.17k over the past 24 hours. This amounted to 69.43% of the total liquidations over the period.
This translated to muted action from buyers on the exchange long/short ratio, with shorts dominating. Furthermore, it meant that buyers could face significant difficulty in pushing MATIC above the VAL ($0.539) in the mid to long-term.