Polygon (MATIC) crypto price has dropped by 6% due to de-risking in the market caused by the conflict between Israel and Hamas. However, there are concerns about whether Polygon is going to zero. Recently, co-founder Jaynti Kanani announced his departure from Polygon before the launch of Polygon 2.0. The decline in Ethereum price, which fell below $1,600, could have triggered the latest drop in MATIC price.
Currently, MATIC is trading at $0.53, showing a 24-hour change of +0.34%. The recent 6% slide occurred as MATIC fell below consolidation at $0.55 and dropped through the 20DMA at $0.53. When MATIC previously fell below this moving average support, it created a 66-day period of upside resistance. The 200DMA, untouched by Polygon since April 30, remains at $0.76.
Despite the downside move, Polygon’s indicators remain bullish. The RSI has cooled-off during the 6% drop and is now at a bullish 45.7, reflecting oversold sentiment. The MACD also maintains minor bullish divergence, indicating an appetite for MATIC at these levels.
Overall, Polygon appears weak, as consolidation above the 20DMA failed to break upside resistance at $0.60. It is now stuck below the moving average, suggesting further downside.
However, there is still an upside target of $0.60, representing a possible 13.64% increase. On the other hand, downside risk could bring MATIC to the lower trendline at $0.50, a possible 5.3% decrease. Therefore, the risk-reward ratio stands at 2.57, indicating that Polygon is not going to zero.
Meanwhile, a new meme coin called Meme Kombat (MK) has emerged with the potential to rival Pepe and SHIB. MK has gained traction with its unique stake-to-mine system and has raised $431,000 in its presale event. Powered by AI, Meme Kombat introduces battles between popular meme characters and allows users to wager using its native ERC-20 token, MK. The project is backed by a robust team and has a promising roadmap, aiming for continuous enhancements and high user engagement.
Considering its traction, innovative approach, and roadmap, Meme Kombat has the potential to join the ranks of Pepe and SHIB. Early-bird investors have the opportunity to participate in the MK presale. However, it’s important to note that crypto investments carry high risks.