Polygon Matic fell around 15% on Thursday, causing the 12th largest crypto by market capitalization to trade under the $0.55 psychological level. MATIC began the day on August 17 at $0.622 before tumbling to a low of $0.533 on Binance.

Analysts say that the latest crash was triggered by several factors, including Elon Musk’s SpaceX reportedly offloading its Bitcoin, a Chinese property giant going, and fears of more interest rate hikes.

MATIC, however, attempted recovery on Friday morning after Magic Eden, an NFT marketplace built on Polygon, announced the launch of a $1 million fund dedicated to supporting creators building on the Ethereum scaling blockchain. 

We’re excited to announce the launch of our $1,000,000 Creator Fund #onPolygon 💜

This program will help the next generation of creators build in the ecosystem as they work alongside our team of industry veterans and advisors.

Click the link below to apply 👇 pic.twitter.com/wu0sFOtFIv

— Magic Eden on Polygon 💜 (@MEonPolygon) August 17, 2023

The newly unveiled fund aims to provide creators with a unique opportunity to seek funding for their Web3 projects based on the Polygon network. Successful applicants will not only secure financial backing but also gain access to Magic Eden’s mentorship, marketing guidance, technical support, and grant resources, all contributing to the realization of their groundbreaking ventures.

In an official statement, Magic Eden underscored the ecosystem’s hurdles during the bear market and conveyed a steadfast commitment to identifying and nurturing the most promising project founders. The objective is to ignite the next wave of NFT adoption, spotlighting projects that stand out for their originality, scalability, and potential to disrupt the established norms of the NFT landscape.

Despite this news, Polygon continued yesterday’s downtrend as the bearish cloud hovering over the crypto market weighed down on all major coins. 

Data from TradingView and CoinMarketCap shows that the Polygon price is currently in the hands of the bears as it hovers around $0.574. The Layer 2 token is down 6% daily and 15% over the last seven days. Over $400 million has been wiped off its market capitalization to $5.3 billion. The daily trading volume is up 26% to $435 million, attesting to the increasing transaction activity as fear, doubt, and uncertainty (FUD) grip the market.

The crypto fear and greed index has dropped from yesterday’s neutral value of 50 to the “Fear zone” at 37. According to Alternative, the firm that analyzes “emotions and sentiments” around cryptocurrencies, fear can be a sign that investors are too worried about their investments and hence sell to minimize their losses.

Crypto Fear and Greed Index

Conversely, the sell-off also offers a buying opportunity as sidelined investors can buy the crypto at a discount.

MATIC Could Offer Opportunity to Buy the Dip at $0.512

The MATIC/USD four-hour chart below shows that the Relative Strength Index (RSI) is moving within the negative region. The price strength at 20 suggested that the bears fully controlled the Polygon price.

The moving averages (MAs) were also facing down, an indication that the market conditions are highly bearish at the moment. The bearish cross from the MAs that occurred when the 100-four-hour Simple Moving Average (SMA) crossed below the 200 SMA on August 16 was still in play. This also added credence to the sellers’ grip on the MATIC price.  

Under these circumstances, Polygon’s price could drop further from the current position, with the 61.8% Fibonacci retracement level providing immediate support at $0.657. Other levels to watch on the downside are the 78.6% retracement level at $0.552 and yesterday’s swing low at $0.533

Losing these levels would see MATIC drop to revisit the $512 level, embraced by the 123.6% retracement level. This would represent an 11% drop from the current price. 

MATIC/USD Four-hour Chart

On the positive side, the RSI showed that MATIC is oversold, meaning that a recovery could be on the cards as seller exhaustion kicks in and bulls buy more on the dip. If this happens, MATIC may rise from the current level, with the first line of resistance emerging from the 50% Fibonacci retracement level at $0.578.

Additional barriers are found at $0.60 psychological and 50 SMA at $0.619. Polygon has to complete the full retracement to $0.622 and climb higher to confirm a sustained recovery.

As the crypto market crashes, investors could be triggered to take out their funds as they look for promising alternatives. Some of the best ways to invest is to look at new coins in presale with a low risk-to-reward ratio and a potential to make good returns on investment in 2023. 

MATIC Alternatives

Wall Street Memes, is a new cryptocurrency in a presale that is inspired by the January 2021 Gamestop and AMC short squeeze that went viral within the stocks and crypto space.  Based on that movement and having their own NFT community, a meme coin that pays homage to that incident, WSM was launched.

According to the project’s whitepaper, Wall Street Memes is the “ultimate expression of the internet’s triumph over rampant capitalism.” Therefore, $WSM is designed to unite the community and prove to the crypto community that “greed is, indeed, very good.” 

Its team is not officially affiliated with r/wallstreetbets but has in the past created successful NFT collections, including the Wall St Bulls on OpenSea.

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$WSM is a crypto with no utility mentioned at the moment. However, it has garnered a massive community on Twitter and other social media platforms. That could be a primary growth driver for this cryptocurrency in the future.

WSM is currently available as a multi-staged presale, which means those who invest early will make profits from the successive stages. So far, the team has raised $ 25 million quickly, indicating a high level of early interest from buyers ahead of its ICO later this year. Due to this impressive performance, our analysts have rated it among the best cryptocurrency to buy in 2023.

To get your hands on some $WSM, visit the Wall Street Memes website here, connect your wallet or bank cards, and buy the tokens using ETH, USDT, or USD.

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• Source: https://insidebitcoins.com/news/polygon-price-prediction-matic-falls-15-underperforming-the-market