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Polygon’s MATIC has lost a quarter of its value from its August high.
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Polygon welcomed Binance stablecoin to its ecosystem on Tuesday.
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MATIC remains vulnerable but expect a bullish reversal soon.
Although Polygon’s MATIC/USD is easily one of the recent top gainers, a bear market remains. Since topping $1 in mid-August, MATIC has been on a downtrend. It currently trades at $0.77, implying a loss of 25% in about a month.
The latest decline in MATIC was connected to profit taking after being one of the biggest gainers in July. Recently a move by the Federal Reserve to hike the rate also added to the bearish weakness. However, it could be a matter of time before MATIC makes a comeback, as it is known for making strong headlines.
On September 20, Polygon and Avalanche announced their support for Binance USD stablecoin. BUSD is ranked in the seventh position by market capitalization. That increases the stablecoin options for users on both blockchains. The move may not be a significant price trigger for MATIC but it underlines the massive position of Polygon.
MATIC price movement amid a bear market
Turning to the technical side, MATIC trades at minor support of $0.77. Nonetheless, the token had already breached the support before correcting upwards. The price action suggests that MATIC is retesting the $0.77. A continuation of the bearish momentum is on the card. Bulls can only arrest the downside if they recover above $0.77.
Source – TradingView
The technical indicators show a bearish market. The MACD indicator is deep in the bear zone while moving averages offer resistance. If MATIC retests $0.77 and fails to go higher, the next support to touch will be $0.62.
Summary
MATIC is retesting a key level. Sellers could look to take the token to $0.62. The bottom support will be tested in a few days to a week’s time if bulls fail at $0.77.