Why Polygon is at risk of turning into a worthless penny stock
|- Polygon price is nearing its last line of defense for entering an existential crisis.
- MATIC price already trades in cents; once the defense breaks, it could even be trading in tenths of a cent.
- MATIC price could become worthless and obsolete.
Polygon (MATIC) price is set to book its eighth straight week of losses, even eleven if you do not count the marginally profitable week from mid-April. But the descent has been so ferocious that Polygon price is trading in the danger zone and is rapidly nearing its last and final support before becoming questionable of having a future still in cryptocurrencies. Will Polygon become the one that disappears after this crypto winter and live to see the day that a relief rally is underway?
MATIC to be the one to disappear?
Polygon price action has been no match since that technical death cross got formed at the beginning of the year, with the 55-day Simple Moving Average (SMA) trading below the 200-day SMA. Although a few attempts for a turnaround came after that, the 200-day SMA proved to be a solid fit on the jar for more gains and recovery. Instead, the contrary becomes more than true with MATIC price losing value week after week and investors starting to turn away from what once was a promising cryptocurrency that was runner-up to replace XRP one day as number three.
MATIC price today is a mere slim shadow of what it once was and is set to close the week with another loss, but this time in the danger zone with only $0.27 as the last line of defense before $0.10 gets exposed and MATIC becomes a penny stock. The only thing that could help is the dollar weakening, but even that is not happening as the dollar remains near its lowest levels and does not seem to budge on the back of central banks squeezing cheap money out of the monetary system. If MATIC survives next week will depend on the support at $0.27, but it is clear that a lifeline or some relief is needed soon.
MATIC/USD weekly chart
In case, as of Monday, that mentioned dollar does weaken substantially, and the DXY-index drops back to 100 or below there, then MATIC will use that window of opportunity to recover relatively quickly. Expect a quick pop above $0.454 with quite some room to move. Without being too overeager, set a target at the 55-day SMA around $0.80, where the first substantial profit-taking and fade-in-the-price action will happen.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.