The expanding gaming landscape in the Polygon network is making some positive noise in the crypto space.
Games use thousands of polygons to run well. 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! And now #zkEVM! Lets keep building lads! Onwards!” Nailwal tweeted.
As of earlier this month, Polygon has also released its zkEVM upgrade, which is beneficial to the ETH and MATIC communities. Polygon revealed this system in July. There will be no interruptions in service when scaling on the chain thanks to the update.
— Sandeep | Polygon 💜🔝3️⃣ (@sandeepnailwal) October 11, 2022
Even with all of these improvements, MATIC still has a terrible performance record after seven days. According to Coingecko, the market has had a price loss of 10.4 percent, which may indicate a lack of investor confidence and widespread bearishness.
If the developed downturn persists, do these developments warrant a bullish stance from MATIC?
Crimson In All Places
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. However, the data reveal a different tale. A bloodier one.
Since Nailwal’s tweet on October 11, the price of MATIC has declined 2.81 percent from the previous trading day. Despite the fact that MATIC is arguably on the low, the prior lows were met with resistance from the bulls, resulting in several pullbacks.
The CMF and momentum indicators displayed positive uptrends throughout these pullbacks. A strong trading day may occur if this cycle of decline and pullback persists.
Possible Reversal To The Upside?
The previous decline was supported by the $0.7286 support line. Bulls should defend this support line to increase the likelihood of a bullish price reversal. On a larger scale, the price movement of MATIC exhibits a triangle climbing pattern.
However, the bearish structure that has emerged will be difficult for bulls to overcome. However, bulls can capitalize on the market’s optimism as a result of the decreased exchange reserves.
The 20-day and 50-day Simple Moving Averages have already completed a bullish crossover and are moving to resist and make a bullish reversal more difficult. However, a bullish reversal is likely to occur if the price rebounds above the $0.7286 support line and the 150-day simple moving average.
MATIC market cap at $6.6 billion on the daily chart | Featured image from The Daily Hodl, Chart: TradingView.com Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.