Polygon Accumulates after a Bull Trap Triggered a 40% Dump

Polygon Plans to Hire 200 New Members by 2023

The fake bullish breakout of early November saw MATIC crash from Q4 2022 highs by 40 percent. However, prices are now relatively firm, adding 20 percent from lows.

Overly, MATIC remains in consolidation, reading from price action in the daily chart.

Going forward, traders can look for entries to align with the primary trend, unloading the coin on every attempt higher. Note that MATIC is technically bearish, bound within a bar flag from Q3 2022 highs from a top-down preview.

Looking at the token’s performance in the past few months, gains from mid-June to mid-August 2022 still shape the current preview. It is because MATIC remains in consolidation with clear limits at August highs and November 2022 lows.

Polygon Growing Its Ecosystem

Amid the bear market and hesitant traders, Polygon is propped by solid fundamentals.

Over the years, Polygon has remained the favorite layer-2 project for scaling Ethereum. Its ecosystem comprises top-tier DeFi, NFTs, and metaverse projects.

At the same time, Polygon Studios continues to assist projects, mainly in traditional space, in adopting blockchain solutions. Recently, Flipkart, one of India’s top e-commerce stores, partnered with Polygon to set up what they say is a “Blockchain-eCommerce Centre of Excellence (CoE).”

According to Sandeep Nailwal, the co-founder of Polygon, this deal will help onboard the next billion users to Web3:

“Polygon’s mission is to bring the next billion users to Web3, and this partnership will pioneer research and development at the intersection of Web3 and experiential retail, which will advance adoption and impact in India and across the world.”

MATIC Price Analysis

Polygon MATIC Daily Chart for December 12

From the daily chart performance, Polygon remains inside a trading range.

The primary support and resistance is at $0.70 and $1 on the upper end. However, in the short term, MATIC is shaped by the November 30 bull bar.

Following the bullish breakout above $0.88, prices have been accumulating, ranging as bulls take control. For swing traders, $0.88 is a critical support line.

A close above $0.95 will confirm the bulls of late November and could propel MATIC back to the November 10 bullish engulfing bar’s high of $1.17.

Conversely, losses below $0.88 may see MATIC sellers fast-track their liquidation towards $0.83 or November 30 low.

Technical charts courtesy of Trading View.

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

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