The last 24 hours have been challenging in the crypto-verse after the false alert that Mt Gox and US government wallets were moving significant amounts of Bitcoin. The news resulted in Bitcoin and Ethereum dipping by over 8% as the crypto community scrambled to verify the transactions on-chain.
MATIC/USDT Looks Set to Reclaim the 200-day MA and $1.06
The fast selling due to the unconfirmed Bitcoin transactions also affected the Polygon (MATIC) price, which dropped by 11% from $1.06 to a local low of $0.9435. However, the digital asset has since reclaimed some of the losses and is now attempting to break past the $1 resistance level at its current price of $0.9959.
The one-day MATIC/USDT chart below, courtesy of Tradingview.com, further shows that the digital asset faces the 200-day (green) moving average as a short-term resistance.
However, MATIC’s one-day MFI (green), MACD and RSI (red) hint at renewed buying interest by the bulls.
Consequently, the digital asset could soon recapture the 200-day moving average as support and keep rising to the $1.06 resistance level, as was before the false news of Mt Gox and US government wallets moving significant amounts of Bitcoin.
But caution is advised going long on MATIC/USDT as a large amount of Bitcoin and Ethereum options and futures contracts expire tomorrow. In addition, Sunday is both the weekly and monthly close. Therefore, there might be considerable volatility between now and then.
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