Polygon (MATIC) Crashes as Trump Thinks of Bitcoin as a Scam
Polygon (MATIC) is experiencing a steep fall on Tuesday, losing more than 11% of its value over the past 24 hours as a bearish mood took
Polygon (MATIC) is experiencing a steep fall on Tuesday, losing more than 11% of its value over the past 24 hours as a bearish mood took over the crypto market following former President Donald Trump terming Bitcoin a scam in an interview in the previous session. At the time of writing, MATIC/USD is trading at around $1.43.
This comes after the cryptocurrency saw stellar performance through the month of May, with prices strengthening by as much as 120% despite the crypto market crash that took place in mid of last month. In contrast, leading cryptocurrency Bitcoin had ended May in the red, losing around 35% of its value.
It remained insulated from the downtrend that plagued most of the digital assets last month amid a rise in adoption of the network, gaining as DeFi projects and investors turned away from Ethereum due to its congestion and high gas fees. In addition, Polygon received a significant boost from news that billionaire Mark Cuban had invested in the company, terming it to be “the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development.”
However, MATIC is not immune to the market sentiment among crypto investors that is driven significantly by moves in Bitcoin, which for now point downwards. The latest bearish moves came after Trump expressed his dislike of the cryptocurrency and said that it seemed like a scam, driving its value down by nearly 9% over the past 24 hours.
Key Levels to Watch
On the H4 chart of MATIC/USD, most of the moving averages as well as the MACD are suggesting a bearish bias in the near-term. However, another leading technical indicator – momentum, is pointing towards a possible uptrend, sending mixed signals, which means that the downtrend may not last too long or be too severe.
The price broke through one key support level at $1.46 and now seems to be headed to test the next level at around $1.35. If the sentiment picks up, however, we could see the movement reverse and MATIC head back up towards $1.67 and beyond, in an attempt to reclaim the key $2 level.
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