Polygon Keeps Going Down Despite Bullish News, Buy The Dip?
The Polygon (MATIC) price is currently at a crucial moment. Despite bullish news, MATIC has been in a downtrend since mid-February. After retesting the March 10 low yesterday, the price is at a turning point.
According to data from on-chain data provider IntoTheBlock, Polygon token holders in profit fell to 34% this week. This is the lowest level since February. Therefore, analyst @CryptoTheBeast_ raises the question whether MATIC will turn around here or continue its downward trajectory?
According to @intotheblock data, $MATIC holders in profit reached down to 34% this week, which is the lowest it has been since February. Will $MATIC turn around here or will it keep going down? pic.twitter.com/Pbu5KQjb5d
— Crypto ₿east (@CryptoTheBeast_) April 27, 2023
MATIC Price Needs Quick Reversal
The 1-day chart of MATIC reveals that MATIC lost the “bull line”, the 200-day Exponential Moving Average (EMA) last Thursday. The indicator served as Polygon’s key support on March 10 and again in late March this year.
Since breaking below the 200-day EMA, currently at $1.0521, MATIC failed to rise above it. If there is no timely recovery and another rejection (like yesterday), MATIC could fall towards the support level at $0.81.
However, with an RSI of 35 on the 1-day chart, MATIC is near oversold territory. So, this price could be the biggest pain for now. On the other hand, regaining the 200-day EMA could avoid this scenario. As then, the 23.6% Fibonacci level at $1.09 is expected to come into focus.
A dynamic move above this area would open the possibility for a rise towards the 38.2% Fibonacci level at $1.185. In this area at the latest, greater selling pressure from the bears can be expected.
Afterwards, the next target of great importance is the 50% Fibonacci level at $1.25. In mid-March, MATIC got rejected at this level and thus failed to achieve a reversal towards the February high.
Bullish News For Polygon
Nonetheless, there is no shortage of bullish news for Polygon at the moment. Traditional finance giant Franklin Templeton announced yesterday that it will be experimenting with Polygon. The company has launched the OnChain US Government Money Fund on the layer-2 blockchain.
Franklin Templeton is one of the world’s largest asset managers, alongside BlackRock, with $1.4 trillion in assets under management (AUM). The Nasdaq-listed mutual fund is the first fund registered in the U.S. to use a public blockchain.
This allows transactions to be processed and ownership to be recorded transparently, according to a press release. A share of the fund is represented by the BENJI token, which investors can manage via a wallet app.
In other news, Polygon Labs and Google Cloud announced a program for Web3 startups on Tuesday. The blockchain project wrote via Twitter that it has teamed up with Google Cloud to help Web3 projects and startups. Up to $3 million will be allocated for this purpose from the Polygon Ventures Ecosystem Fund.
🫱🏾🫲🏼 We’re joining @googlecloud to help Web3 projects and startups grow with access to:
✅ Up to $3M USD in investments from the Polygon Ventures Ecosystem Fund
✅ Priority Reviews
✅ All Polygon Venture benefits☁️✨https://t.co/wFhIb9af7n https://t.co/hJGKZivbOQ
— Polygon (Labs) (@0xPolygonLabs) April 25, 2023
Featured image from The Economic Times, chart from TradingView.com
