- MATIC prices display a possible 15% plunge after breaking down the swing lows of $1.51.
- Such a move might drop the Layer2 coin towards $1.41 and 1.30 in dire scenarios.
- Uniswap governance forum witnessed a proposal discussing AMM deployment on Polygon.
MATIC price has witnessed consolidative movements over the previous ten days, hinting further plummets towards support levels. The downswing comes after the alt violated the latest swing low. Moreover, the near-term bearish picture by the leading cryptocurrency contributed to the narrative.
Proposal to Introduce Uniswap on Polygon Network
Uniswap governance forum witnessed a proposal to launch AMM (Automated Market Maker) on Polygon. The move aims to decrease gas fees considerably. Gas fees surged as Ethereum gained popularity this year, attracting new investors to the space.
ETH blockchain has not reduced costs regardless of the proof-of-stake introduction and London hard fork implementation. Keep in mind that Ethereum has dealt with massive gas charges for a long.
Polygon has served as a scaling solution for multiple crypto projects, including Ethereum, Matcha, SushiSwap, Curve, Aave, and Balancer. All these platforms sprung their respective networks on the proof-of-stake by Polygon. Uniswap plans to join the move with this proposal.
If successful, the move will further support MATIC’s bullish fundamentals, catalyzing upsurges for the token. Though the Polygon adoption is bullish on a long-term outlook, MATIC’s near-term technical picture shows bearish gestures.
MATIC Price Outlook
MATIC had its price breaching through 10 November swing low of $1.51 on 16 November. The downswing shows that market players can expect the token to plunge lower. So far, MATIC reacted under the resistance barrier at $1.67 and plummeted by 6.4% to its current level of $1.57.
Meanwhile, enthusiasts can anticipate MATIC to continue dropping to retest support levels at $1.45, then $1.41. Though the alternative token can consolidate at $1.41, market makers might drag MATIC lower to fill FVG (Fair Value Gap). That means breaching the two barriers can knock MATIC down to $1.30, translating to a 22% fall from $1.67.
Though the possible downtrend, MATIC might surge to conquer the resistance barrier at $1.67. if such actions see buying pressure pushing Polygon or a higher high beyond $1.77, the crypto will cancel the bearish narrative.
By Postmodern Studio – shutterstock.com
