In yesterday’s trading session, Polygon Matic dropped by a massive 16 per cent, reversing a bullish trend that has seen it rise by more than 50 per cent in five days. Today, the strong bearish trend looks set to continue, with Polygon Matic already down by more than 10 per cent. Its prices have also broken down below the $1 price level for the second time in as many trading sessions.
The aggressive Polygon Matic bearish trend comes amidst controversy that has pitted two of the largest cryptocurrency exchanges against each other and caused a downturn in the markets. According to recent reports, the tensions between the Binance and FTX exchanges, which have resulted in FTX agreeing to sell their platform to Binance, have weighed on the digital asset market, which is already battling its own mayhem.
The impact of the fight has extended to other projects, such as Polygon Matic, which is significantly correlated with the industry. Therefore, with the industry dropping by more than 10 per cent in today’s trading session, the prices of Polygon Matic have also been dragged down by the same rate, contributing to the current aggressive bearish trend.
The recent market factors, including the bearish cryptocurrency industry, will continue weighing heavily on the Polygon Matic price, whether directly or indirectly, due to their correlation. Throughout the year, we have seen Polygon Matic’s aggressive push to the upside being dragged by market forces, a pattern that seems to be repeating for the past one week.
Therefore, based on the current market factors, including the bitter rivalry between Binance and FTX and the bearish trend of the industry, I expect Polygon Matic’s price to continue falling, with a possible hit of the 0.72 support level. However, a reversal that results in prices trading above today’s opening price of 1.04 will invalidate my analysis and signal a resumption of a bullish trend.
This post was last modified on Nov 09, 2022, 13:39 GMT 13:39