MATIC Drops 15% - Underperforming the Market?

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MATIC could offer the opportunity to buy the dip at $0.512 MATIC alternatives Related news

Polygon Matic fell about 15% on Thursday, causing the 12th largest crypto by market cap to trade below the psychological level of $0.55. MATIC started the day on August 17 at $0.622 before tumbling to a low of $0.533 on Binance.

Analysts say the latest crash was caused by several factors, including Elon Musk’s SpaceX reportedly letting go of its Bitcoin, a Chinese real estate giant leaving, and fears of more rate hikes.

However, MATIC attempted to recover Friday morning after Magic Eden, an NFT marketplace built on Polygon, announced the launch of a $1 million fund to support creators building on the Ethereum scale blockchain.

We are pleased to announce the launch of our $1,000,000 Creator Fund #onPolygon ????

This program helps the next generation of creators build the ecosystem as they work with our team of industry veterans and consultants.

Click on the link below to apply ???? pic.twitter.com/wu0sFOtFIv

— Magical Eden on Polygon ???? (@MEonPolygon) August 17, 2023

The recently unveiled fund aims to provide a unique opportunity for creators to seek funding for their Web3 projects based on the Polygon network. In addition to receiving financial support, successful applicants gain access to Magic Eden’s mentorship, marketing guidance, technical support and grant resources, all of which contribute to the realization of their groundbreaking ventures.

In an official statement, Magic Eden highlighted the ecosystem’s hurdles during the bear market and demonstrated a determined commitment to identifying and nurturing the most promising project founders. The goal is to spark the next wave of NFT adoption, highlighting projects that stand out for their originality, scalability and potential to disrupt the established norms of the NFT landscape.

Despite this news, Polygon continued yesterday’s downtrend as the bearish cloud hovering over the crypto market weighed on all major coins.

Data from TradingView and CoinMarketCap shows that the Polygon price is currently in the hands of the bears as it hovers around $0.574. The Layer 2 token is down 6% per day and down 15% over the past seven days. More than $400 million has been wiped from its market cap to $5.3 billion. Daily trading volume is up 26% to $435 million, testifying to increasing transaction activity as fear, doubt and uncertainty (FUD) grip the market.

The crypto fear and greed index has dropped from yesterday’s neutral reading of 50 to the “fear zone” at 37. According to Alternativethe company that analyzes “emotions and sentiments” around cryptocurrencies, fear may be a sign that investors are too concerned about their investments and are therefore selling to minimize their losses.

Crypto Fear and Greed Index

Conversely, the sell-off also presents a buying opportunity as sidelined investors can purchase the crypto at a discount.

MATIC could offer the opportunity to buy the dip at $0.512

The four-hour MATIC/USD chart below shows the Relative Strength Index (RSI) moving within the negative region. The price strength at 20 suggested that the bears were in complete control of Polygon price.

Moving averages (MAs) were also pointing to the downside, indicating that market conditions are currently very bearish. The bearish cross of the MAs that occurred when the 100-four-hour Simple Moving Average (SMA) moved below the 200 SMA on Aug. 16 was still in play. This also added credibility to the sellers’ grip on the MATIC price.

Under these circumstances, the price of Polygon could continue to fall from its current position, with the 61.8% Fibonacci retracement level providing immediate support at $0.657. Other levels to watch are the 78.6% retracement level at $0.552 and yesterday’s swing low at $0.533

If these levels are lost, MATIC would fall to revisit the $512 level embraced by the 123.6% retracement level. This would represent an 11% drop from the current price.

Four-hour MATIC/USD chart

Polygon price chart - August 18 — TradinfView chart: MATIC/USD

On the upside, the RSI showed that MATIC is oversold, meaning a recovery could be imminent as seller exhaustion hits and bulls buy more into the dip. If this happens, MATIC may rise from its current level, with the first line of resistance coming from the 50% Fibonacci retracement level at $0.578.

Additional barriers can be found at $0.60 psychological and 50 SMA at $0.619. Polygon needs to complete the full retracement to climb to $0.622 and above to confirm a sustainable recovery.

As the crypto market crashes, investors may be pushed to withdraw their funds as they look for promising alternatives. Some of the best ways to invest is to look for new pre-sale coins that have a low risk-reward ratio and a potential to earn a good return on investment in 2023.

MATIC alternatives

Wall Street memes, is a new cryptocurrency in a pre-sale inspired by the January 2021 Gamestop and AMC short squeeze that went viral within the stocks and crypto space. Based on that move and with their own NFT community, a meme coin paying homage to that incident, WSM was launched.

According to the project white paper, Wall Street Memes is the “ultimate expression of the Internet’s triumph over rampant capitalism.” Therefore, $WSM is designed to unite the community and prove to the crypto community that “greed is very good indeed”.

The team is not officially affiliated with r/wallstreetbets, but has created successful NFT collections in the past, including the Wall St Bulls on OpenSea.

$WSM is a cryptocurrency with no utility listed at this time. However, it has gathered a huge community on Twitter and other social media platforms. That could be a primary growth driver for this cryptocurrency in the future.

WSM is currently available as a multi-stage pre-sale, meaning those who invest early will reap profits from successive stages. So far, the team has quickly raised $25 million, indicating a high level of early interest from buyers ahead of the ICO later this year. Due to this impressive performance, our analysts have rated it as one of the best cryptocurrency to buy in 2023.

To get your hands on some $WSM, visit the Wall Street Memes website here, plug in your wallet or bank cards and buy the tokens using ETH, USDT or USD.

Wall Street Memes – Next Big Crypto