Polygon (MATIC) makes slight bullish gains, retreats shortly after

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Written on Dec 20, 2021

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MATIC had shown slight gains during the past 24 hours and attempted to reach $2.30.
Polygon’s bullish gains have been disrupted by a recession across the broader market.
Currently, MATIC shows signs of dropping lower because the market is still bearish.

Polygon (MATIC/USD) has been attempting bullish gains over the past few weeks. In the long term, the coin is still on an uptrend despite volatility across the market.

At the time of writing, MATIC is down 6% to trade at $2.08. The prices have corrected since the beginning of the month because of the bearish trend in the market. However, the token is still up 28% over the last month and over 200% higher from its July lows.

MATIC could make an uptrend

MATIC’s price has outperformed in recent months. The market is still bearish, and most tokens, including MATIC, are trading in the red zone. However, when the market started dipping, MATIC stood its ground as one of the tokens still trading well.

Following the strong resistance that the token has shown compared to other tokens in the market, it has managed to climb up the ranking, and it is currently inching closer to surpassing Shiba Inu (SHIB/USD) in terms of market capitalization. The market cap is currently approaching $15 billion.

If there are additional gains, MATIC could head towards the higher levels of $2.10. The resistance currently lies at $2.28, as the coin had reached these levels during a 24-hour bullish rally, but it failed to push higher.

Market sentiment is still bearish

The price of Polygon shows a strong bearish sentiment because of what is happening across the market. Bitcoin and Ethereum prices are sluggish, which could pull Polygon back. MATIC’s price recession is most likely to maintain such movements for the foreseeable future.

The crypto and broader financial markets are volatile, and it has remained so since the Covid-19 pandemic was stirred. The festive season is expected to stir up this volatility; hence MATIC could be headed towards a further recession over the coming weeks. Therefore, the current price volatility could attract traders that want to buy during the dip and attract a price rally.

If the crypto market heads towards a downtrend and MATIC’s buying pressure drops, the coin could drop towards the lower support of $1.98. The market has been making ups and downs, and if MATIC continues with its price recession, it could drop towards $1.50 and test the 200-day Moving Average of $1.44.