Polygon reaches level that last time triggered a 275% MATIC price rally — Will history repeat?

Polygon ( MATIC ) price reversed course to the top on May 10 after testing $ 0.794 as its interim back, thus rising by up to 25 % to $ 0.99. The rebound occurred a day after the token slumped over 17 % to reach $ 0.787, its lowest flush since July 2021, amid a global market crash led by the U.S. Federal Reserve ‘s militant policies. MATIC price rebounded after undergoing five days of grim declines, attracting buyers around the same accompaniment horizontal surface that had preceded a 275 % bull run last year .MATIC/USD weekly price chart. Source: TradingView A previous retest of the $ 0.787-level in July 2021 and the 0.786 Fib line ( near $ 0.61 ) of the Fibonacci retracement graph — draw from the $ 0.002-swing low to 2.86-swing high — followed up with MATIC rising to its commemorate high of $ 3 by December 2021.

therefore, MATIC/USD might undergo a exchangeable, sharp top retracement in the do weeks after rebounding from the lapp support concourse .

MATIC fundamentals: Then and now

however, a draw has changed in terms of market fundamentals between July 2021 and May 2022 that may influence MATIC traders ‘ behavior. For example, MATIC ‘s price boom occurred end year as demand for layer-2 solutions increased ascribable to Ethereum ‘s rocket gas and transaction costs. As a result, popular decentralized finance ( DeFI ) applications, including decentralized exchange SushiSwap ( SUSHI ), liquid service Curve ( CRV ), and lending platform Aave ( AAVE ), expanded their operations in the Polygon chain .The total value locked inside Polygon liquidity pools. Source: Defi Llama  But 2022 has been a bad class for cryptos. The Fed ‘s decision to hike interest rates followed by the unwind of their $ 9 trillion balance plane has prompted investors to reduce their exposures to riskier assets. unfortunately, the prospect of excess cash leaving the marketplace has hurt MATIC, whose year-to-date paper returns were about 65 % below zero as of May 10. unfortunately, the prognosis of excess cash leaving the market has hurt MATIC, whose year-to-date wallpaper returns were about 65 % below zero as of May 10.

Related: 10-month BTC price lows spark $1B liquidation as Bitcoin eyes $35K CME futures gap “ This is a risk-off across all asset classes, including crypto, ” Daniel Ives, strategist at Wedbush Securities, told the Financial Times, adding that digital asset investors have “ nowhere to hide. ” He added :

“Some investors are playing crypto like a hedge against inflation, but it’s trading like the Nasdaq’s Siamese twin.”

Silver lining amid chaos: Meta

On May 9, Polygon CEO Ryan Watt announced that they are partnering with Meta to create a nonfungible nominal ( NFT ) platform for Facebook and Instagram. Meta CEO Mark Zuckerberg besides confirmed that they have been “ testing digital collectibles for creators and collectors to showcase NFTs on Instagram, ” adding that exchangeable features would come to Facebook soon. The hype could help MATIC form a solid price floor .

massive.

Read more: Coin Master – Wikipedia

— Michaël van de Poppe (@CryptoMichNL) May 9, 2022

But from a technical position, MATIC risks bearish sequel toward $ 0.615 in May .MATIC/USD weekly price chart. Source: TradingView meanwhile, a bullish confirmation looks less probably to appear unless the nominal reclaims its 50-week exponential move modal ( 50-week EMA ; the red wave ) near $ 1.37 as hold. The views and opinions expressed here are entirely those of the writer and do not necessarily reflect the views of Cointelegraph.com. Every investing and trade move involves risk, you should conduct your own inquiry when making a decision .

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