Polygon Matic continues to set new price lows, with the latest price of $0.57 being the first time the cryptocurrency is trading at that level in over a year. In today’s trading session, Polygon Matic has dropped by 12 per cent. It is also the second consecutive trading session that the cryptocurrency is losing in the markets by more than 10 per cent.
The current drop coincides with the global cryptocurrency market crash that has resulted in a 13 per cent drop in the global market cap of the digital asset. Its sharp decline also comes days after the UST controversy, which resulted in LUNA prices and the stablecoin Terra USD losing more than 99 per cent of its value.
In today’s trading session, it was revealed that Tether, the world’s largest stablecoin, had slid below the one-dollar peg by six cents. Naturally, this caused ripples in the market following the fall of UST. However, unlike UST, which depended on Luna for its liquidity, Tether assured its users that their token is backed by real money. Therefore, events seen during the UST drop are unlikely to happen.
Polygon Matic continues to set new price lows, following a streak of bearish trading sessions. Today, the cryptocurrency is down by 12 per cent. The chart below shows the Williams Alligator indicator giving strong signals that the current bearish move is likely to continue. We can also see that recently the prices pierced through the support level of $0.68 to the downside.
Therefore, I expect the prices to continue with the current bearish trend. There is a very high likelihood that the current bearish move will see the cryptocurrency trading below the $0.500 psychological level. However, if the prices reverse and close above today’s opening price of $0.66, my analysis will be invalidated. It will also spell a likelihood of a bullish move.
This post was last modified on May 12, 2022, 18:22 BST 18:22