The price of Polygon (MATIC) is currently at a crucial time. Despite bullish news, MATIC has been in a downward trend since mid-February. After retesting the March 10 low yesterday, the price is at a turning point.
According to data from on-chain data provider IntoTheBlock, Polygon token holders’ profits fell to 34% this week. This is the lowest level since February. Therefore, analyst @CryptoTheBeast_ raises the question of whether MATIC will reverse here or continue its downward trajectory?
According to @intotheblock facts, $MATIC holders in earnings fell to 34% this week, the lowest since February. Shall $MATIC turn around here or will it keep going down? pic.twitter.com/Pbu5KQjb5d
— Crypto ₿east (@CryptoTheBeast_) April 27, 2023
MATIC price needs quick reversal
MATIC’s 1-day chart reveals that MATIC lost the bull line, the 200-day exponential moving average (EMA), last Thursday. The indicator served as Polygon’s main support on March 10 and again at the end of March this year.
Since breaking the 200-day EMA, currently at $1.0521, MATIC has not come out on top. If there is no timely recovery and another rejection (like yesterday), MATIC could drop to the $0.81 support level.
However, with an RSI of 35 on the 1-day chart, MATIC is near oversold territory. So this price could be the biggest pain for now. On the other hand, regaining the 200-day EMA could avoid this scenario. As then, the Fibonacci level of 23.6% at $1.09 is expected to enter the picture.
A dynamic move above this area would open the possibility for a rise to the 38.2% Fibonacci level at $1,185. Greater selling pressure from the bears can be expected in this area at the latest.
After that, the next target of great interest is the 50% Fibonacci level at $1.25. In mid-March, MATIC was rejected at this level and thus failed to achieve a reversal to the February high.
Bullish news for polygon
Nevertheless, there is no shortage of bullish news for Polygon right now. Traditional financial giant Franklin Templeton announced yesterday that it will experiment with Polygon. The company has launched the OnChain US Government Money Fund on the layer-2 blockchain.
Franklin Templeton is one of the world’s largest asset managers, alongside BlackRock, with $1.4 trillion in assets under management (AUM). The Nasdaq-listed mutual fund is the first US-registered fund to use a public blockchain.
This allows transactions to be processed and ownership to be transparently recorded, according to a press release. Part of the fund is represented by the BENJI token, which investors can manage through a wallet app.
In other news, Polygon Labs and Google Cloud announced a program for Web3 startups on Tuesday. The blockchain project wrote via Twitter that it is partnering with Google Cloud to help Web3 projects and startups. Up to $3 million will be allocated for this from the Polygon Ventures Ecosystem Fund.
We are in @googlecloud to help grow Web3 projects and startups with access to:
Up to $3 million USD in investments from the Polygon Ventures Ecosystem Fund
https://t.co/wFhIb9af7n https://t.co/hJGKZivbOQ
— Polygon (Labs) (@0xPolygonLabs) April 25, 2023
Featured image from The Economic Times, chart from TradingView.com
