MATIC Falls 15% – Underperforming the Market?

Polygon Matic fell around 15% on Thursday, causing the 12th largest crypto by market cap to trade below the psychological $0.55 mark. MATIC started the day on August 17 at $0.622 before dropping to a low of $0.533 on Binance.

Analysts say that the latest crash was triggered by several factors, including Elon Musk’s SpaceX reportedly offloading its Bitcoins, the Chinese property giant leaving, and fears of further interest rate hikes.

MATIC, however, attempted a recovery Friday morning after Magic Eden, the NFT marketplace built on top of Polygon, announced the launch of a $1 million fund dedicated to supporting content creators building the Ethereum scaling blockchain.

We’re excited to announce the launch of our $1,000,000 Creator Fund #onPolygon 💜

This program will help the next generation of creators build an ecosystem as they work alongside our team of industry veterans and advisors.

Click on the link below to register 👇 pic.twitter.com/wu0sFOtFIv

— Magic Eden at Polygon 💜 (@MEonPolygon) August 17, 2023

This newly launched fund aims to provide a unique opportunity for content creators to seek funding for their Web3 projects based on the Polygon network. Successful applicants will not only receive financial support but also gain access to Magic Eden mentorship, marketing guidance, technical support and grant resources, all of which contribute to the realization of their innovative endeavors.

In an official statement, Magic Eden underscores the ecosystem hurdles during a bear market and conveys its unwavering commitment to identify and nurture the most promising project founders. The goal is to spark the next wave of NFT adoption, highlighting projects that stand out for their originality, scalability, and potential to disrupt established norms of the NFT landscape.

Despite this news, Polygon continued yesterday’s downtrend as the bearish cloud hovering over the crypto market weighed on all the major coins.

Data from TradingView and CoinMarketCap shows that the price of Polygon is currently in bearish hands as it sits around $0.574. Layer 2 tokens are down 6% daily and 15% over the last seven days. Over $400 million has been removed from its market cap to $5.3 billion. Daily trading volume rose 26% to $435 million, testifying to increased transaction activity as fear, doubt and uncertainty (FUD) gripped the markets.

The crypto fear and greed index has dropped from yesterday’s neutral value of 50 to the “Zone of fear” at 37. According to Alternative, a company that analyzes “emotions and sentiment” around cryptocurrencies, fear can be a sign that investors are worrying too much about their investments and are therefore selling to minimize their losses.

Crypto Fear and Greed Index

Conversely, a sell-off also offers a buying opportunity as sidelined investors can buy crypto at a discount.

MATIC May Offer Opportunity to Buy Dip at $0.512

The four-hour chart of MATIC/USD below shows that the Relative Strength Index (RSI) is moving in negative territory. Price strength at 20 indicates that the bears are fully in control of the Polygon price.

The moving averages (MA) are also facing downwards, an indication that the market condition is very bearish at the moment. A bearish cross of the MA that occurred when the 100-four-hour Simple Moving Average (SMA) crossed below the 200 SMA on Aug. 16 is still in play. This also adds confidence to the seller’s grip on the price of MATIC.

Under these circumstances, Polygon’s price could fall further from its current position, with the 61.8% Fibonacci retracement level providing immediate support at $0.657. Other levels to watch on the downside are the 78.6% retracement level at $0.552 and yesterday’s swing low at $0.533.

Losing this level would send MATIC down to revisit the $512 level, embraced by the 123.6% retracement level. This would represent an 11% decrease from the current price.

MATIC/USD Four Hour Chart

On the plus side, the RSI shows that MATIC is oversold, which means that a recovery could ensue as seller fatigue sets in and buyers buy more on the dips. If this happens, MATIC could advance from current levels, with the first line of resistance emerging from the 50% Fibonacci retracement level of $0.578.

Additional resistance is found at the psychological $0.60 and the 50 SMA at $0.619. Polygon needs to complete a full retracement to $0.622 and head higher to confirm a sustained recovery.

When the crypto market crashes, investors can be triggered to take their funds as they look for promising alternatives. Some of the best ways to invest are by looking at new coins in presale with a low risk-to-reward ratio and the potential to generate a good return on investment in 2023.

MATIC alternative

Wall Street memes, is a new cryptocurrency in pre-sale inspired by Gamestop and AMC’s January 2021 squeeze that went viral on stock exchanges and the crypto space. Building on that movement and having its own NFT community, a meme coin that pays homage to the incident, WSM was launched.

According to the project White paper, Wall Street Memes are “the ultimate expression of the internet’s victory over rampant capitalism”. Therefore, $WSM is designed to bring the community together and prove to the crypto community that “greed really is good.”

The team is not officially affiliated with r/wallstreetbets but has in the past made successful NFT collections, including Wall St Bulls at OpenSea.

$WSM is crypto with no utility mentioned at the moment. However, it has amassed a large community on Twitter and other social media platforms. That could be a key growth driver for this cryptocurrency in the future.

WSM is currently available as a multi-tranche presale, meaning those who invest early will benefit from the later tranches. So far, the team has raised $25 million quickly, indicating high initial interest from buyers ahead of the ICO later this year. Due to this impressive performance, our analysts have rated it among the best cryptocurrencies to buy in 2023.

To get $WSM, visit the Wall Street Memes website here, connect your wallet or bank card, and buy tokens using ETH, USDT or USD.

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