Polygon (MATIC) has dropped more than 60% in four months, crashing to register new 2022 lows when writing.
As of June 12, MATIC is changing hands at $0.65 as buyers attempt to tame aggressive sellers who have been dumping over the weekend.
Per the MATIC/USDT candlestick arrangement in the daily chart, the path of least resistance remains southwards.
Since the dump has high participation, traders can look for shorting opportunities if prices are below $0.75 or December 2022 lows.
SEC’s Actions Spark Sell-off
The rapid sell-off of MATIC follows comments by the United States Securities and Exchange Commission (SEC) that, among other coins, MATIC is an unregistered security.
The SEC made these allegations when it filed lawsuits against Binance and Coinbase, two of the world’s popular cryptocurrency exchanges.
Following these comments, not only have holders been selling, and exiting their capital for other assets like USDT and Bitcoin, but some trading ramps have announced plans to delist MATIC.
Robinhood, a trading platform allowing users to trade crypto derivatives, including those of MATIC, said it would stop supporting the token following the uncertainty surrounding the asset status.
In a message to users, Robinhood said:
“Earlier this week, the SEC sued crypto companies Binance and Coinbase and alleged that a number of cryptocurrencies are unregistered securities. This includes Solana (SOL), Polygon (MATIC), and Cardano (ADA), which are currently supported on the Robinhood Crypto platform. This introduced a cloud of uncertainty around these assets. As a result, our team has decided to end support for them.”
Polygon (MATIC) Price Analysis
From the daily chart, MATIC is under pressure and within a bear breakout formation.
Following SEC’s announcements, the token has broken two key support levels marking March 2023 and December 2022. The immediate resistance level, previous support, is at $0.75.
With the token attempting to edge higher and remaining within the June 10 bear bar, every attempt toward $0.75 will allow traders to exit. This preview is valid from an effort-versus-result perspective. Note that June 11 volumes were light, and prices were within the bearish engulfing trade range.
At this pace, MATIC may slip towards June 2022 lows at $0.32 in a bear trend continuation formation. It will be especially the case if sellers force prices below $0.51.
This preview will change if MATIC soars above $0.75 with expanding trading volumes.
Technical charts courtesy of Trading View.
Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.
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