For games to function well, they require thousands upon thousands of Polygons. As for the blockchain gaming community, they’re now using Polygon. Sandeep Nailwal, co-founder of Polygon, recently tweeted evidence of the company’s leadership in the blockchain gaming industry.
“Just look at the growth of gaming users on @0xPolygon. Growth is “ORDERS OF MAGNITUDE” bigger than any other chain ecosystem! Now #zkEVM Let’s continue building, lads. Onwards!” Nailwal tweeted.
Polygon’s zkEVM upgrades were also made available earlier this month. These are beneficial for the ETH, MATIC, and other communities. Polygon announced this upgrade in July. The update will ensure that there won’t be any interruptions to service during scaling of the chain.
— Sandeep | Polygon 💜🔝3️⃣ (@sandeepnailwal) October 11, 2022
Even with all of these improvements, MATIC still has a terrible performance record after seven days. Coingecko reports that MATIC has experienced a loss in price of 10.4 percentage, which might indicate investor anxiety and general bearishness.
Do these developments justify a bullish MATIC stance if the downturn in developed economies continues?
Crimson is everywhere
According to statistics from CryptoQuant, MATIC’s exchange reserve has declined by 17.77% over the previous week, indicating a decrease in overall selling pressure as more people purchase and hold the coin. The data however reveal an entirely different story. The bloodier version.
Since Nailwal’s tweet on October 11, the price of MATIC has declined 2.81 percent from the previous trading day. MATIC’s current low is not undisputed, however, previous lows were met resistance by the bulls and resulted in several pullbacks.
CMF, momentum and other indicators showed uptrends during these pullbacks. This cycle of pullback and decline may continue, which could lead to a strong trading day.
Possible Reversal to the Upside
The $0.7286 support level supported the prior decline. To increase the chances of a bearish price turn, bulls need to defend this support line. MATIC’s price movements show a triangular climbing pattern on a bigger scale.
The bearish structure which has been created will prove difficult to overcome for bulls. However, bulls can capitalize on the market’s optimism as a result of the decreased exchange reserves.
Both the 20-day Simple Moving Averages and 50-day Simple Moving averages are already showing a bullish crossover. They continue to resist making a bullish turn more challenging. If the price rises above the $0.7286 support level and the 150-day simple move average, then a bullish correction is possible.
Featured image from The Daily Hodl, Chart: TradingView.com| Featured image from The Daily Hodl, Chart: TradingView.com Disclaimer: This analysis is the author's opinion and should not necessarily be considered investment advice.