Polygon has rallied a bit during the trading session on Thursday, as we continue to hang around the $0.60 region. It looks as if we are forming a descending triangle, and therefore if we break down we could go down to the $0.40 level based upon the measured move, but quite frankly I think this is a market that has much further to go to the downside than that.
The 50 Day EMA is sitting just above the $0.80 level, so if we do get a little bit of a breakout to the upside, that could be a target. However, I would not hold my breath for that, as the downtrend is so prevalent. In fact, the market is only worth about one-third of what it was just two months ago. This has been an epic meltdown, and it looks as if Polygon is another one of these coins and ecosystems that may disappear.
MATIC has been like many other platforms, promising quite a bit but delivering very little. There has been no real adoption of crypto out there, and by far the one ecosystem that seems to have the most opportunity will be Ethereum. These smaller coins will have their uses, but there are hundreds of them fighting for a few spots. This is a lot like the tech bubble in the late 90s, we need a cleansing of the crypto world in order to have some winners emerge.
At this point, I do not think polygon is one of them so I have been going out on offshore exchanges to short this market with leverage every time it tries to rally. If we break down below the $0.40 level, I think at that point we would drop another $0.20, or we would then have to start to ask questions about whether or not polygon will even exist.
If we do breakout above the $0.80 level, then it’s possible that we could go looking to the $1.20 level, but that would be a doubling of price, so it would obviously take quite a bit of time to make that happen. While it does not seem like much, $0.60 would be a huge move to the upside, giving credence to the concerns about the illusionary effects of a cheap coin. Quite frankly, cheap markets get cheaper over time.
