One of the biggest mistakes crypto traders make is that they forget they are trading against the US dollar, so they are essentially Forex traders.
Polygon had a relatively bullish session on Wednesday, breaking above the $0.46 level. While this is a positive development, the reality is that this market is so beaten down at this point, it really doesn’t matter. Eventually, this market will have to consolidate and build up trust again, but there are a lot of people who have lost a lot of money in this pair. Polygon suffers at the hands of the crypto meltdown just as everything else does, regardless of what it is they are supposed to be doing.
We have too many crypto projects out there, and what’s going on right now is actually a good thing. A lot of these minor projects are going to be wiped out, just like we had seen in the tech bubble 20 some years ago. Ultimately, whether or not Polygon survives is beyond me, but I don’t think that it’s in imminent danger of disappearing. However, I also believe that pullbacks should continue, so you should not be in a huge rush to jump in and buy a ton of this coin.
The 50-day EMA currently sits at the $0.63 level, which is just above the previous “shelf” that the market built. If we can break through all of that, it would obviously be a very bullish turn of events, but I would not hold my breath waiting for that to happen.
The US dollar is strong against almost everything, and of course, crypto is not going to be any different. One of the biggest mistakes crypto traders make is that they forget they are trading against the US dollar, so they are essentially Forex traders. This is especially true if they are trading the CFD market because now you are not even bothered taking custody. There’s nothing wrong with that, it’s just that you need to understand the game you are playing.
At this point, it would take a lot for me to get bullish on Polygon. It would almost certainly have to be some type of market-specific news because the rest of crypto is in serious trouble. Whether or not it survives is still beyond my pay grade, but it does have a reasonable shot at doing so. As long as that’s the case, there has to be a bottom somewhere, and I think we are in the midst of trying to find it.