For a long time, Polygon has been on the rise, but it faced a sudden run when FTX announced a lack of liquidity in their exchange. As the third most popular crypto exchange, FTX is facing financial challenges that are causing sales pressure in the crypto market. Binance came to the rescue, but on Wednesday, Binance announced that it will not receive FTX because of the uncontrollable liquidity.
As a result, the SEC and the US Congress will investigate the FTX issue, which is why the crypto market will change in the next few weeks. Polygon is one of the main layer 2 scaling protocols on the Ethereum network. That is why he quickly returned to the hot candle, and now he has regained the previous level of support.
This shows that investors have gained confidence in MATIC, while many other cryptocurrencies are still weak. This shows the power of MATIC coins in the end. Polygon has been rallying for the past four months, but this news came as a new challenge for the crypto world, and many retail investors began to fear selling because they were worried themselves for the support of Polygon. such new technology.
Will Polygon, affected by the FTX Crisis, be able to maintain its level?
In fact, some cryptocurrencies have bounced back quickly; Polygon is one of them. Experts believe that the FTX liquidity problem is not a big problem (but an internal problem of the platform), and it does not have a long-term effect, so investors have gained confidence in their favorite digital assets. However, some other experts believe that the US FED has raised interest rates and the outflow from the crypto economy will continue even in the next year. Read our MATIC forecast to find out how brands will react in this changing market!
On the daily chart, we can see the range of changes for a short period of time. After facing resistance around $1.25, MATIC reached a strong short-term support around $0.76 in 24 hours. Now it is trading around $1 and the candlestick is forming near the main line of the Bollinger Bands.
Most of the galleries are neutral at the moment, so we don’t think this is the best time to invest as Polygon can break the support and find a lower support around $0.5.
However, the weekly chart of MATIC has formed a high, so $1 will be a long-term level. Of course, you can collect a few coins at this stage, but we think you’ll have to wait a few days until Polygon picks up steam. After that, you can invest for a long time.
