The value of Polygon’s MATIC cryptocurrency has been on a downward trend, despite positive news from Korea and strong data from the NFT market. Since reaching its yearly high of $1.56 on February 13, the price of MATIC has dropped by 60% and is now trading at just $0.6169.
Polygon Can’t Stop MATIC’s Downtrend
MATIC has been unable to break out of its downtrend, with both the trendline and the 200-day EMA proving to be strong resistance. The token has also fallen below the 23.6% Fibonacci retracement level at $0.75.
If MATIC fails to hold support at $0.60, it could potentially drop towards its yearly low of $0.50. However, if the $0.60 level holds as support in the coming days, there may be another attempt to break out of the downtrend.
For MATIC to break out of its current downtrend, it would need to rise above $0.71. However, a true validation of the breakout would come from the 23.6% Fibonacci retracement level, which is currently at $0.75. If MATIC can rise above this level, it could signal that the bulls are regaining control.
The next major challenge for MATIC bulls would be to overcome the 200-day EMA, which is currently at $0.84. Until these levels are reached, it appears that MATIC may continue to experience further downside.
The fact that positive news has not been able to move the price of MATIC is not a good sign for the bulls. In the past two days, Polygon has announced two pieces of positive news. Most recently, Polygon Labs has entered into a strategic partnership with SK Telecom, South Korea’s leading mobile telecom operator.
This partnership aims to expand SKT’s Web3 ecosystem and position the telecom giant at the forefront of the growing decentralized technology sector.
According to Polygon’s CEO, Marc Boiron, the partnership with SK Telecom is an important step in bringing Web3 experiences to more consumers. He explained that Polygon Labs has been working on developing the best blockchain technology for the popularization of Web3, and this collaboration with SKT is a key part of that effort.