Polygon’s MATIC price in negative spiral affected by escalation of war in Ukraine

Polygon (MATIC) price action is further slipping over the weekend after comments from Putin where he commits to see the war with Ukraine through until the end. With that, price pressure is mounting as inflation peaks even more, and energy prices are seeing more panic-buying across the board. In this environment, the dollar strength outweighs in almost every cross, and in the case of cryptocurrencies is setting up MATIC for some heavy losses throughout this week towards $1.20 and possibly $1.00.

MATIC price is technically caught in a death cross

Polygon is under siege as bearish pressure is mounting daily, with short-sellers in the game and dollar strength playing the multiplier and enlarging losses. To make matters worse, bulls were unable to spark a reversal over the weekend, and by that absence, the 55-day Simple Moving Average (SMA) is breaking below the 200-day SMA around the 1.70$ area. This signals more bearish pressure to come as short-sellers will only add more to their short position.

MATIC price will dip further throughout the week as no positive news is in sight, with a test initially at $1.30 in the next 24 hours. The next leg lower will be $1.20 with the monthly S1 support level and historical low. As Putin spoke harsh words over the weekend, expect to see more downward pressure on negative headlines that could see $1.06 or even a break below $1.00, summing up losses of between 16% to 33%.

MATIC/USD daily chart

Alternatively, the dollar backing off would already be enough to spark some upside. That could come if the situation in Ukraine stabilised a bit – from a cease-fire or a truce of some sort that triggers a relief rally and the dollar weakening in most crosses. As a result of that, MATIC could jump 12% intraday, back to $1.57 or even $1.65, with the monthly pivot on the verge of popping higher should there be a follow-through.