Polygon down 6%: short-term weakness from inflation shock, watch for support
I see Polygon's 6% drop as a market-wide, inflation-driven risk-off move rather than proof of a fundamental breakdown in the protocol.
Price momentum has turned negative and heavy selling indicates short-term weakness, but on-chain activity and long-term adoption metrics remain intact.
I will avoid adding size until I see stabilization around key support or a pause in macro-driven outflows; any new positions should be limited and sized for volatility.
Analysis
Recommendation
Don't buy aggressively. Wait for price stabilization or a macro-driven relief signal; consider small, graduated buys only after clear support or reduced selling pressure.
Disclaimer
The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.