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Polygon Capped by Bitcoin, MATIC Slides 20% But Will Sellers Break $1.5?

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Polygon is one of the sphere’s largest DeFi facilitators.

Existing as an Ethereum’s side chain, it is also one of the most actively built layers allowing fast and cheap transactions.

Notably, Polygon’s transactions are settled with near-zero fees since the base is scalable and interoperable with the EVM.

Fundamentally, the MATIC price expansion was due to increasing adoption—and branching out from Ethereum native dApps mostly in DeFi—to the platform.

Polygon Market Performance and Price Status

MATIC prices are at near all-time highs at spot rates despite the losses over the weekend.

Overall, traders are defiant while investors continue to bank on the potential of DeFi to the entire finance ecosystem.

In the short term, MATICUSDT prices may shrink below critical support trend lines in a necessary pullback from peaks.

Polygon MATIC Daily Chart for December 6

All the same, swing traders might find entries, capitalizing on the slide to post profits. On the other end of the spectrum, position traders—playing the long-term game, could be doubling down, dollar-cost averaging MATIC on pullbacks.

The coin is relatively firm from the MATICUSDT price performance, posting minor losses, unlike other altcoins. MATIC is down 20 percent and trending inside the December 4 bear candlestick when writing.

The pullback of December 5 might have offered hope. Still, the free-falling of crypto prices in the early Asian session on December 6 reversed gains, throwing back price action in favor of sellers. All the same, the primary trend from a top-down approach is bullish even in the face of selling pressure.

A close below the primary support trend line and, most importantly, $1.5 will confirm losses of December 4. In that case, MATIC may dump towards $1—the 78.6 percent Fibonacci retracement line of the H2 2021 trade range.

On the flip side, an unexpected surge unwinding losses of December 4 piercing above $2.2 may be the ray of hope to revive MATIC demand.

MATIC Cup-and-Handle Pattern

Aforementioned, traders are defiant. Most of them strongly believe the dip of last week was climactic, marking bottoms.

One trader on Twitter points out a cup-and-handle formation in the 12-hour chart of the MATICUSDT.

Thus far, despite sharp, high volume losses of December 4, there has been no confirmation of sellers pointing to resilient and determined buyers.

Accordingly, the trader expects a bounce back from spot rates above $2.2 in a resumption of the primary trend. Per his estimation, MATIC prices could shoot towards $3—or better.

Will MATICUSDT Track Inside the Ascending Pitchfork Channel?

One analyst on Trading View believes MATIC’s fundamentals are still bullish—a net positive for optimistic Polygon traders.

Polygon MATIC bulls

Based on the performance in the daily chart, it is highly likely that not only will MATIC prices recover from spot rates but also clear recent all-time highs to post new territories in the next few weeks.

Specifically, the trader talks about the fundamental side of Polygon where they plan to add ZK Technology.

This move, the trader says, will add a lot of credibility to the project, further pumping it higher—and supporting prices.

Even so, should bears press lower, traders might find ideal entries at around $1.5—the immediate support line mentioned earlier.

Polygon Performance Is “Strong”—Impacted By Bitcoin

Compared to other coins, Polygon’s performance is decent and stronger. A recovery of BTC prices could offer more support for MATIC prices above $2.2.

Even so, if sellers press lower below the ascending support trend line, it may fall towards $1 to $1.5 support zone—entries for buyers.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

Passionate about Blockchain, Crypto, Blockchain, and Bitcoin. Excited of what lies ahead. Advocating adoption. HODLer!

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