On Tuesday, the Polygon Matic’s price surged by 7 per cent reversing a long-term bearish trend that had seen the crypto lose 30 per cent of its value since November 11. Today, the bullish trend looks poised to extend the past two bullish trading sessions, with its price already up by less than a percentage point.
The current bullish trend follows a string of aggressive bear markets that happened as a direct result of the collapse of the FTX crypto exchange platform. Due to Polygon Matic’s significant correlation with the industry, the FTX collapse, which dragged most cryptocurrency projects, also saw Matic get into a bearish trend.
Investors have also grown cautious of the cryptocurrency industry, with the current greed and fear index showing most being in extreme fear region. Therefore, unlike in recent months, investors are not putting most of their money in most cryptocurrency projects, resulting in the current drop in trading volumes and slow market growth.
For instance, in the past 24 hours, Polygon Matic has seen its trading volume drop by over 30 per cent. Although such a drop is normal in the crypto industry, the recent data shows the trading volume has been consistent for the past few weeks and has partly contributed to the recent Polygon Matic price drop.
Since Tuesday, the Polygon Matic has been in an aggressive bullish trend, which has seen its value rise by over 10 per cent. The chart also shows technical indicators, such as the Williams Alligators starting to give signals of a reversal.
Therefore, based on recent price action, there is a high likelihood that we might see Polygon Matic continuing with the recent bullish trend. There is a high likelihood that we might see the crypto trading above the $1 price level for the first time since November 12 in the next few trading sessions. However, a drop below the $0.80 price level will invalidate my bullish analysis.
This post was last modified on Nov 24, 2022, 11:59 GMT 11:59