- Matic price saw a correction to 61.8% Fibonacci retracement level at $0.37 after its 93% bull rally.
- A 25% upswing is on the horizon as MATIC bounces off this a confluence of support.
- A bearish scenario will come into the picture if the 0.37 level is breached.
MATIC price has pulled back after surging nearly 100% recently. Now, the altcoin's correction could be coming to an end as it sees a massive 11% surge indicating a resurgence of buyers.
MATIC price correction rebounds
MATIC price saw a 30% correction to the 61.8% Fibonacci retracement level at $0.37 from its recent all-time high at $0.54. This support level is a confluence of the Momentum Reversal Indicator (MRI) breakout line and the SuperTrend indicator's recent buy signal.
Due to this demand barrier's nature, MATIC price saw an 11% surge in a single 4-hour candlestick, hinting at the buyers' aggressive bid orders. If this buying pressure persists, then Polygon could surge another 25% to retest its recent all-time high at $0.54.
Adding credence to this upswing is MRI's trend reversal signal presented in the form of green one candlestick on the 4-hour chart. This setup forecasts a u-turn in the pullback and suggests the start of a new uptrend.
MATIC/USDT 4-hour chart
According to IntoTheBlock's In/Out of the Money Around Price (IOMAP) model, 1,800 addresses have previously purchased nearly 147 million MATIC tokens at $0.40. Hence, the buying pressure as Polygon bounces off the $0.37 level will compound leading to an aggressive upswing.
MATIC IOMAP chart
However, the forecasted bull rally for MATIC price will not be smooth, especially considering the cluster of underwater investors ahead. IOMAP cohorts reveal $0.44 will be a tough nut to crack as 1,650 addresses that purchased 111 million MATIC tokens are "Out of the Money." Therefore, these investors will absorb the incoming bullish momentum by breaking even.
So, MATIC price could be in trouble if the support barrier at $0.37 is breached. In such a case, the investors present above this level will also add to the selling pressure pushing MATIC down 15% towards the 50% Fibonacci retracement level at $0.32
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