MATIC price plummets 13.75% as strong bearish momentum expected in Polygon market

Key Takeaways:

• Polygon’s native token, MATIC price, dropped 13.75% to go below $1.5 before rebounding.
• Unstoppable domains announced transitioning its NFT domain names to Polygon network.
• EasyFi Network announced its lending protocol is now live on Polygon.

NEW DELHI (CoinChapter.com) — Polygon’s native cryptocurrency, MATIC coin price, suffered a loss of 13.75% between high ($1.694) to low ($1.461) on Nov 16, taking the Polygon crypto to its lowest level in Nov.

The Polygon crypto token ended in Oct with 72% monthly gains. Though MATIC price is down nearly 20% in Nov, bulls are using the opportunity to buy more MATIC. As such, bulls seem hopeful of a breakout. Despite MATIC’s Nov bear run, the Polygon token has not broken below the July-Nov ascending trendline.

Meanwhile, Unstoppable Domains, the world’s leading blockchain domain naming service, announced that customers can now mint new domains on the Polygon Blockchain for free. In addition, EasyFi Network, a universal Layer-2 lending protocol, went live with money markets on the Polygon Network.

Polygon(Matic) Coin Prices: Down, But Bulls Still Optimistic

MATIC prices are struggling to reach new highs, with any upside movement capped by Nov’s descending trendline. However, increasing volumes indicate that bulls are buying the dip, indicating an underlying positive sentiment for the Polygon crypto. Besides the descending trendline, MATIC has resistance at $1.652.

The 26-day Exponential moving average acts as resistance near $1.746. If a breakout occurs, a sustained rally would likely see prices rise to $1.84 before prices pare. Moreover, Tuesday’s fall saw MATIC move below its 50-day MA trendline, making the Polygon crypto bearish in the short-term range.

On the other hand, if the current downtrend continues, MATIC would find support at $1.47, a price level that has been strong support for the Polygon token since Oct 16. In addition, the 200-day MA trendline acts as key support for MATIC near $1.362.

Also Read: Even a hacked Polygon may not stop MATIC from pursuing a 90% price rally

A sustained sell-off would bring the support at $1.261 into play. However, a drop to this level would involve breaking below the July-Nov ascending trendline. The ascending trendline almost coincides with MATIC’s 200-day MA trendline and remains unbreached despite MATIC prices testing it in Sept and Oct.

Additionally, the relative strength index for MATIC is moving downwards towards oversold levels. An RSI below 30 indicates an asset is in an oversold condition, and thus, it may be ready for a trend reversal. Currently, the RSI for MATIC is 39.99.

On the flip side, trend-based momentum oscillator MACD is bearish for the Polygon crypto. The MACD line (difference between 12-day and 26-day EMA) moved below the MACD signal line (9-day EMA of MACD) on Nov 6. Moreover, bars on the MACD histogram plot the difference between the MACD and its signal line increase value.

The increasing value of MACD histogram bars indicates the MACD line is moving further away from its signal line, forecasting strong bearish momentum for MATIC coin.

Unstoppable Domains And EasyFi Come To Polygon

Unstoppable Domains (UD) is a multipurpose, blockchain-based solution for domain names. It provides users with unique domain names that can replace long, alphanumeric cryptocurrency addresses with easy to read URLs. The firm aims to connect Web2 to Web3 through the use of blockchain domains.

Also Read: MATIC jumps 17% as Polygon PoS chain processes 1 billion transactions

Initially, Unstoppable Domains used the Zilliqa blockchain before moving to Ethereum. The domain names that UD provides also function as NFTs. However, unlike other NFTs, which are often visual art forms such as images or videos, NFT domain names are simply web domain names on a blockchain.

Unstoppable Domains announced it would no longer charge customers any gas fees for minting NFT domain names, thanks to its decision to transition to the Polygon network. Earlier, gas fees for minting a single domain name on UD using Ethereum would go as high as $100.

At present, Unstoppable completed the first phase of its move to Polygon. After completing its transition, users would set up domains and add other features like NFT galleries and social media links.

In other news, EasyFi, a Layer-2 DeFi lending protocol, announced its lending services are now live on Polygon. The new protocol would initially support six new money markets for supplies and borrowings.

The announcement also stated that EasyFi would next launch markets on Binance Smart Chain, followed by expansion to other networks.

At the time of writing, MATIC coin price was trading at $1.60, down 5.48% on the day.

Read more about Polygon Matic news here.