The Continuing Decline of Polygon (MATIC) Price
The price of Polygon (MATIC) continues to experience a downward trend. Despite recent positive developments in Korea and strong data from the NFT market, the price remains on a decline. Since reaching its yearly high of $1.56 on February 13, the MATIC price has fallen by 60%, currently trading at just $0.6169.
Throughout this period, MATIC has shown a clear downtrend, with a recent test in mid-July. However, attempts at a breakout have been unsuccessful due to strong resistance from both the trendline and the 200-day EMA. Furthermore, MATIC has now dropped below the 23.6% Fibonacci retracement level at $0.75.
If the support at $0.60 in shorter time frames is breached, there is a potential for a decline towards the yearly low at $0.50. Conversely, if this level establishes itself as support in the coming days, there could be an opportunity for MATIC to attempt a breakout from the downtrend. For this breakout, MATIC would need to surpass the $0.71 mark. Confirmation of the breakout from the downtrend would require a rise above $0.75, which might allow the bulls to regain control. The subsequent challenge for the MATIC bulls would be conquering the 200-day EMA at $0.84. Until these conditions are met, MATIC appears to be positioned for further decline.
Positive News Fails to Impact Polygon Price
It’s concerning for MATIC bulls that even positive news is unable to influence the price. In the last two days, Polygon has announced two positive developments. Today, Polygon Labs has formed a strategic alliance with SK Telecom (NYSE: SKM), a prominent mobile telecom operator in South Korea. The collaboration aims to expand SKT’s Web3 ecosystem, positioning the telecom giant at the forefront of the growing decentralized tech sector.
Marc Boiron, Polygon’s CEO, explained the partnership’s significance, stating, “Polygon Labs has been working on advanced blockchain technology for Web3 adoption, and we view this collaboration with SKT as a crucial step in bringing Web3 experiences to a wider audience.”
The collaboration revolves around integrating the Polygon blockchain into SKT’s NFT marketplace, TopPort, and their upcoming Web3 wallet scheduled for launch in 2023. This wallet is set to provide users with fast, cost-effective transactions, leveraging Ethereum’s security and decentralization features. With the widespread adoption of Polygon-based solutions by global brands, this integration is expected to greatly enhance SKT’s Web3 offerings.
Both entities are committed to identifying and supporting promising Web3 startups. “By combining our blockchain service expertise and Polygon Lab’s blockchain infrastructure and ecosystem, we can create valuable business opportunities and contribute to the growth of the Web3 ecosystem,” said Oh Se-hyun, Vice President and Head of Web3 CO at SKT.
Furthermore, Polygon’s NFT ecosystem has secured the second spot in trading volume over a month-long period, as noted by Polygon Labs founder Sandeep Nailwal. This increase can be attributed not only to high-value transactions but also a surge in micro-transactions, underscoring Polygon’s accessibility and widespread use. By transaction count, Polygon surpasses Ethereum mainchain by threefold, with the number of “buyers” on Polygon being 30% higher than the mainchain. These trends solidify Polygon’s growing position in the decentralized tech sector.