fxs_header_sponsor_anchor

Polygon investors weigh the risk of U.S. regulations on MATIC price

  • With risk-off across the board, both the U.S. central bank and Congress are looking into regulations for cryptocurrencies. 
  • The positive side-effect from sanctions against Russia is declining against regulation uncertainty. 
  • Expect MATIC price action to slip below $1.57, looking for lower-level support.

Polygon (MATIC) price action is under scrutiny by the US Federal Reserve and the White House after comments that the US is looking into greater regulation for cryptocurrencies. After several major cryptocurrency exchanges ignored demands from Biden to ban operations by Russian participants, the US is now looking into seizing control of cryptocurrencies. The comments sparked a drop in MATIC price, set to fall below the critical support at $1.57 with more losses to come. 

MATIC looks heavy as regulations outweigh side-effects

Polygon price was on the cusp of breaking above $1.75 after a three-day winning streak as investors enjoyed favourable tailwinds coming from buying by people in both Ukraine and Russia using cryptocurrencies as an alternative method of payment. With the improvement of sanctions, Biden was quick to ask several crypto exchanges to exclude Russian clients, but all exchanges came out with a joint statement that cryptocurrencies are not bound by the law of any country and are there to provide free movement. In a countermove, Biden drilled down on cryptocurrencies in his State of the Union speech, and Powell asked for regulations to be imposed in his seasonal Senate hearing on monetary policy.

MATIC price is shedding near 3% intraday with bulls jumping in to support the $1.57 pivotal level. Although it looks to hold – for now – the Relative Strength Index (RSI) is taking a nudge lower and dipping back below 50, revealing that bears are again taking over control of the price action. A break below $1.57 later in the session or tomorrow could see a sharp drop lower towards either $1.40 or $1.30.

MATIC/USD daily chart

Should investors withstand current selling pressure, more upside is to be had as regulations will take months to be passed by both the House and the Senate and would still be limited to only the US borders. Investors would quickly shake off any downturn, and MATIC would see more buying towards $1.75. With that, the 200-day Simple Moving Average (SMA) will be broken to the upside, and a return to $2.00 in the near term would be feasible.


 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.