Is MATIC ‘doomed to irrelevancy?’ What analysts have to say

As an experienced analyst, I have witnessed firsthand the ebb and flow of the cryptocurrency market. The recent trend has shown a clear bifurcation between strong performers and struggling altcoins, such as MATIC, LDO, and APE. While some coins like Solana have continued to soar, others have struggled to maintain their gains.

As a researcher studying the cryptocurrency market trends, I’ve noticed that while several altcoins experienced significant recoveries in the last quarter of 2023, only a select few managed to sustain their momentum. Among these, Solana (SOL) stood out as a noteworthy exception during both Q4 2023 and Q1 2024.

During the same timeframe, various altcoins found it challenging to build on their late 2023 recuperation and carry it forward into 2024. Instead, a few even lost the small progress they had made.

According to the anonymous analyst ColdBloodShill, Polygon [MATIC] is underperforming among its peers. The analyst made this observation publically.

“Take $MATIC for instance; it has reversed all its price advancements from 2023 to 2024 and is now trading below a crucial support line. In contrast, Bitcoin remains strong, and most other altcoins continue to build upon the progress they made over the past seven months.”

A spot check of MATIC’s technical analysis showed that $0.75 was key support in Q4 2023. But it was flipped to resistance in Q2 2024, meaning vast amounts of last year’s gains have been wiped out.

Market bifurcation: How MATIC and others could lose out

In simpler terms, “market bifurcation” refers to a situation in the market where certain tokens or stocks significantly outshine others in performance.

The reasons for potential market growth in 2024 could include heightened visibility on social media, a greater willingness to take risks, and compelling stories. However, the market trends during this cycle have seen selective gains that raise more questions than they answer.

Referring to MATIC, the analyst quipped that,

“Is it a valid consideration that these alternative coins may eventually become obsolete? Are investors already shifting their preferences towards stronger performing assets, such as Bitcoin?”

The analyst pointed out that the market split, which is adversely impacting MATIC, is also reflected in the price trends of Lido (LDO) and ApeCoin (APE). In simpler terms, the market separation, which is harming Matic’s performance, can be seen in the pricing patterns of Lido and ApeCoin as well.

However, MATIC has been fighting a strong FUD after being mentioned as one of the “zombie chains.”

As a crypto investor, I’ve been following the developments of Polygon with great interest due to its promising partnerships and network effects. However, when I looked at the price charts, there was no visible sign of these advantages reflected in the value of my investment. Sandeep Nailwal, the founder of Polygon, lightheartedly expressed this sentiment by saying, “It’s all fun and games until we see some price action!”

Over the past two days, several significant developments have taken place in the Polygon network. Robinhood wallets now support token swaps. Franklin Templeton initiated peer-to-peer transfers of Reitwise Assets (RWAs). Stripe announced the acceptance of USD Coin (USDC) transactions. Additionally, Spencernoon released a report revealing the largest number of stablecoin users are present on Polygon. In response to this news, someone expressed skepticism about Polygon’s vitality due to its lackluster price movement.

In order to maximize profits, it may be necessary to regularly assess the story behind a security and the direction of its price movement, then adjust your position accordingly.

In other words, the split in the market requires extra care, thorough research, and adaptive risk control strategies to protect against significant price drops while the market continues to rise strongly.

2024-04-30 08:07

Market bifurcation: How MATIC and others could lose out

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