MATIC Bulls Fumble the Bag after the Market Panic that Turned the Correction Phase into a Nosedive

The crypto market was not spared. The whole market depreciated by almost 17% in the past 24 hours, marking a period of strong bearish pressure.

MATIC bulls fumbled the bag after the latest market panic that turned the expected correction phase into a nosedive. According to the latest market data, MATIC took a beating with a 33% value wipe since last week. The hostile market environment and macroeconomic fears continue to plague the broader financial world.

The crypto market was not spared. The whole market depreciated by almost 17% in the past 24 hours, marking a period of strong bearish pressure. Despite the overwhelming downward trajectory the market has taken, on-chain developments continue that might slow the bearish wave, but it will take time before the price mediates back to realistic levels.

Related Reading: Binance Coin In Turmoil: Nearly 10% Value Erased In Market Shake-Up

MATIC Bulls Fumble The Bag

As the market continues its painful descent, investors are poised to let go of their MATIC holdings. Recent market data shows that investors are rushing to exchanges to sell rather than hold and ride the bearish wave.

This can be seen in MATIC’s price which continues to test the $0.339 support level. The token fell below the crucial $0.42 support level earlier today, signaling more pain for investors.

MATIC price analysis on the 4-hour chart. Source: MATICUSD on TradingView.com

The market overreaction caused by cascading fears within the broader financial spectrum remains to threaten any future bullish action. As of the moment, MATIC is down to March 2021 levels, a new low after 2024’s early bull runs led by major cryptocurrencies like Bitcoin and Ethereum.

Investors and traders should evaluate their positions to remain in the green. If possible, they can try to take advantage of the situation by shorting the token.

Polygon Continues To Solidify Its Position In The Market

On the other hand, despite the bearish market conditions, Polygon continues to make strides in solidifying its position within the crypto space.

A recent report by Messari, an independent crypto research platform, provides an overview of the latest developments in the Polygon ecosystem during the 2nd quarter of the year.

Some key highlights from the report include community consensus on upgrades that will enhance the network’s usability and performance, such as the upcoming MATIC to $POL token switch on September 4th.

Additionally, to further attract developers to Polygon, the platform announced a $1 billion Community Grants Program (CGP), which will be supporting developers and builders of Polygon financially.

According to a June blogpost, Season 1 of the CGP will feature a 35 million MATIC pool which is roughly equivalent to $12.9 million using today’s prices.

Furthermore, Uniswap has also launched its Uniswap v3 campaign on Polygon with another $250k in rewards on Oku, a crypto trading platform, to boost investor confidence in the platform.

This is seen in the current metrics the platform is running on. Nansen’s data shows an increase in active addresses and transactions in the past 24 hours, a great indicator of growth activity if it wasn’t for the air of bearishness surrounding the market.

DefiLlama, on the other hand, shows the other side of the coin with major outflows on all chains under the Polygon ecosystem.

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