The momentum and sentiments remained negative, leaving no room for upside in the prices. Investors turned risk-averse as rising inflation and looming inflationary worries lingered.
All major tokens were trading sharply lower. Solana plunged about 13 per cent, whereas Avalanche posted a 10 per cent cut. Shiba Inu and Polkadot dropped 7 per cent each. Bitcoin and others were 6 per cent down.
The global cryptocurrency market cap was trading sharply lower at the $1.23 trillion mark, dropping about 5 per cent in the last 24 hours. However, the total cryptocurrency trading volume zoomed about 13 per cent to $97.19 billion.
What’s cooking in India
Layer 2 side-chain Polygon is requiring extensive KYC (Know Your Customer) details to provide funding, investments, grants or financial support to potential partners in India, suggested media reports.
Allegedly, developers in India have recently been talking about the difficulty of acquiring funding or investment from Polygon, going as far as saying Polygon had altogether stopped funding projects in the country.
Expert take
Darshan Bathija, CEO and Co-Founder, Vauld said, “With Bitcoin dropping below $30,000, the gains made over the past few days were wiped off. Altcoins also registered a decline in the prices.”
With the US equities enduring another day of retracement, the crypto markets followed a similar path. Given the high correlation between BTC and S&P 500 index, the odds of traders remaining bullish on cryptocurrencies were lower, he added.
Global updates
- Norms governing banks’ exposure to crypto assets will be completed this year, the Basel Committee on Banking Supervision said, taking notice of recent market struggles as a reason to push ahead with the controversial plans.
- Binance Labs, the venture capital arm of cryptocurrency exchange Binance, has raised $500 million to establish a fund that will invest in Web 3 and blockchain companies.
Tech View by Giottus Crypto Exchange
Polygon (MATIC) network helps Ethereum-based projects to connect and scale. MATIC is an ERC-20 token used to govern and secure the Polygon network. It is also used to pay transaction fees on the Polygon network. MATIC is currently trading at $0.6 as part of a tight channel it has been in throughout the week.
MATIC has lost about 80 per cent of its value since its all-time high in December. It has been forming a falling wedge pattern over the past month, having lost crucial trendline support at $0.96 after creating a series of lower highs since its April high of $1.5. A falling wedge is a bullish pattern.
The token has failed to break out of its trendline resistance twice in May at $0.94 and $0.68, leading to a low of $0.49 from where it bounced. Since then, it has largely moved sideways. If the downturn continues, MATIC may be retesting support at as low as $0.3 in the days ahead.
However, if Bitcoin bounces and market sentiment becomes more positive, MATIC could make a move toward the psychological level of $0.75. To gather upward momentum, MATIC needs to break out of its falling wedge pattern.
Major Levels
Resistance: $0.75, $0.78, $0.98
Support: $0.5, $0.3
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)
