Polygon wipes June losses as MATIC price doubles in six days — fakeout risks remain

YEREVAN (CoinChapter.com) – Polygon (MATIC) surged by over 90% in the previous six days to reach $0.60 this June 24, nearly erasing its June losses. However, fakeout risks persist.

MATIC price ‘bull trap’

MATIC tested its crucial downward sloping resistance on June 23 and 24, which has been instrumental in capping its bullish attempts since mid-May. However, the token recoiled later, leaving itself in the grasp of bears, risking price correction toward the “target support” near $0.31.

MATIC already trades 80% below its all-time high of $2.92 in December 2021.

Also read: Polygon price soars 50% in five days amid massive whale accumulation — what's next for MATIC?

A crypto analyst under the pseudonym XO agreed with the bearish outlook, pinpointing the target price at $0.25.

Additionally, the token depends heavily on Bitcoin BTC price action and the crypto market climate. A long-running solo rally is improbable in turbulent times. Thus, watching the broader economy and BTC/USD fluctuations is key to placing profitable MATIC bets.

Bullish cues, meanwhile

As CoinChapter covered in the previous review, Polygon scored an essential NFT partnership with Bentley and saw broader adoption. In addition, one of the largest crypto exchanges, Coinbase, announced it’s making Web3 accessibility “faster, easier, and cheaper” through integrating Polygon transactions.

Over the next month, eligible Coinbase customers will be able to send and receive ETH, MATIC, and USDC on Polygon, and USDC on Solana. The Polygon integration marks the first time Coinbase has enabled the ability to send and receive these assets on an L2 or sidechain.

commented Coinbase.

Also read: Another villain in Bitcoin market misery: Treasury Inflation-Protected Securities (TIPS).

Polygon token’s daily chart flashed some bearish cues after the strong bullish move in the previous week. However, should Bitcoin bottom out, MATIC is likely to follow.

And vice versa, Bitcoin could take altcoins along for the ride if it falls further. Meanwhile, wider Polygon adoption continues with new NFT deals and Coinbase money transfer opportunities.