MATIC price at make-or-break point as Polygon launches $2 million bounty program

MATIC price has experienced a massive downswing over the past four days and seems to have found temporary relief. If the buyers step in, there is a chance of a minor rally, but failing to do so might trigger a further descent.

$2 million bug bounty program

With Bitcoin crashing, altcoins like Ethereum, Solana and MATIC are seeing a downswing as well. Despite the slump in the cryptocurrency markets, Polygon announced a $2 million bounty program on Immunefi.

This initiative from Polygon comes as millions of dollars are being lost to exploits in the DeFi ecosystem due to buggy smart contracts and/or unaudited codes. Therefore, the team wants to ensure it does not encounter these problems and is proactively offering up to $2 million in rewards.

The focus of the program is mainly on smart contract bugs. On this front, the announcement adds,

Critical Smart Contract bug reports are further capped at 10% of economic damage, which primarily takes into consideration the funds at risk but may include branding and PR aspects at the discretion of the team. However, they have a minimum reward of USD 100,000. Payouts are handled by the Polygon team directly and are denominated in USD. However, payouts are done in ETH, MATIC or a stablecoin, at the discretion of the Polygon team.

Based on the severity of the smart contract bug, the bounty ranges anywhere from $1,000 to $2 million, with a "critical" bug fetching a minimum of $100,000. Likewise, web application bugs yield rewards between $2,500 and $15,000.

MATIC price to face a decisive moment

MATIC price dropped nearly 30% over the past three days and is currently bouncing off the 62% Fibonacci retracement level at $1.068. The current support floor offers a stable ground for the buyers to make a comeback. 

The bulls have a chance to push MATIC price to reclaim the 50% Fibonacci retracement level at $1.21, which could potentially kick-start an uptrend. However, failing to do so might indicate increased seller activity and trigger a breakdown of $1.068.

Such a move will likely result in a correction to the 70.5% Fibonacci retracement level at $0.868.

In a bearish case, MATIC price could revisit the $0.733 demand barrier.

MATIC/USDT 1-day chart

On the other hand, if the bullish momentum pushes MATIC price above $1.21, it will indicate a resurgence of buyers, suggesting their intention to propel the altcoin higher. Moreover, this move will invalidate the bearish thesis. 

In some situations, Polygon could rally another 14% to tag the $1.384 ceiling.