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Even as the FTX-induced downward market continues, Polygon (MATIC) is closely following in the footsteps of its older relative ETH. Despite the bears’ dominance this year, many in the cryptocurrency industry see 2023 as the final chapter following a period of uncertainty.
A quick rundown of Polygon:
– MATIC is down at $0.843512
– TradingShot analysts show that Polygon follows ETH price closely with a rejection by the 50-day MA
– 2023 is not likely to bring a strong rally for MATIC by Shelby3
According to TradingShot, MATIC’s price action is difficult to ignore because it mirrors Ethereum’s price action from 2016 to 2017.
We all know that an investment’s past success is no indicator of its future success, but let’s see what this is about anyhow.
What’s In Store For MATIC (Polygon) In 2023
Based on the data, it is clear that Polygon has been following in ETH’s footsteps throughout 2016 and 2017.
Both were rejected at the 50-day moving average, a critical level because it was this situation that finally pushed the ETH bulls out of the bear market.
TradingShot predicts that there will be a significant increase in MATIC’s price in 2023 if the fractal keeps being replicated.
In contrast, the market in 2017 is radically different in terms of the crypto market’s size and the fundamental drivers that influence price movement.
Considering prior external influences such as the LUNA fall and the recent FTX collapse, we can all agree that the market will be wary regarding these assertions.
Another researcher by the name of Shelby3 contends that 2023 will bring far greater suffering. We may be able to discern a medium ground for investors and traders; 2023 will not deliver the anticipated significant rally, but it will end the bearish sentiment in the cryptocurrency market.
Extra Eye On MATIC
As of this writing, CoinGecko data is still flashing red across all timelines, indicating that it is losing value. Increasing exchange reserves for the token indicates a strong sell sentiment in the MATIC market.
MATIC is trading at $$0.843512, down 10.3% in the last seven days, data by Coingecko show, Wednesday.
With MATIC continuing to trade at a red candle at $0.7846, which is coupled with a restricted trading range, it would continue to face agony until later this year and maybe until the first quarter of 2023.
Investors and traders should be wary of MATIC on both the short- and long-term, as it continues to demonstrate a strong bearish bias.
Even if MATIC follows in the footsteps of ETH, market forces and macroeconomic variables will eventually affect the price of MATIC.
MATIC total market cap at $7.3 billion on the daily chart | Featured image from Carscoops, Chart: TradingView.com