The trading price of Polygon (MATIC) had been demonstrating a strong run since February 15. Although the overall market trend was low, MATIC kept moving in the upward direction.
Prior to the strong push, MATIC’s trading price was stuck at a neckline resistance. It was reportedly stuck at $1.3 and it needed to break out, which the asset achieved on February 15.
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MATIC was to Move Higher
Just as the strong performance was demonstrated by MATIC, the investors had hoped to achieve more. Even the analysts were expecting a strong performance from MATIC as it had recently broken out of the neckline resistance.
The outcome was unfortunate as the trading price of MATIC did not display significant growth. According to the market analysis data, the neckline resistance pattern had been forming for the past three months.
Finally, as the pattern had been broken, it was expected that the investors would increase their buying power. This would call upon greater buying pressure, eventually pushing the trading price of MATIC much higher than the previous runs.
MATIC has Moved Downwards
Unfortunately, uncertainty looms over the crypto industry at the moment, which has forced investors to take a step back. They are currently on a back foot in terms of investing in crypto and the same is the case for MATIC.
The sentiments that had become bullish following the Feb. 15 breakout ended up shifting sides to bearish sentiments.
MATIC declined with the asset’s price went down to $1.3. It was a strong support mark for the asset but the decline did not stop there as the more bearish movement was in order.
The trading price of MATIC continued taking one fall after another and from the peak price of $1.526, the asset’s price has declined to $1.26.
The recent pull in the trading price of MATIC has gone on to prove that the asset was bound for two outcomes.
It was either a bull trap, suggesting that the bears let the asset break out deliberately for higher gains. The other outcome is that the bulls were not strong enough to sustain the selling pressure and they gave up easily.
In both cases, it is a victory for the bears as they are the ones currently driving the price of the asset to the lower end.
A look at the price action of MATIC goes to show exactly what has been going on with the asset lately. In the past 2 weeks, the asset seems to have registered a V-top rejection.
The stats show that the rejection was witnessed at $1.52, which is again a strong resistance level for MATIC. The V-top rejection is quite visible in the past 2 week’s performance, which shows a sudden decline in the value of the asset.
MATIC Lost 17.5% in Valuation
Although the asset’s performance has been somewhat better than the rest of the major altcoins it has become alarming in recent sessions.
Due to the recent downtrend, the valuation of MATIC has ended up losing 17.5% of its overall market valuation. To make things worse, the bulls even ended up losing to the bear at the support level of $1.3 in the recent session.
Inflation Rates Move Higher
The US Feds recently shared data about the PCE price index, showing that the inflation rate is on the rise. The increase recorded in the inflation rates is higher than the economists had predicted for January.
This could only mean an opportunity for the Feds to keep up with their decision of increasing the interest rates. This means that the dollar is in for a strong bullish run but the cryptocurrencies are in for a bearish trend.
Given the current circumstances, it is highly unlikely that the price of MATIC would move higher. However, the monetary policy is subject to change in the future, which means that the crypto assets would re-emerge.
There is hope for investors who are ready to HODL MATIC for a longer term.