MATIC, Polygon’s native token, recently suffered a big price decline amid a broader market downturn. The token dropped over 20% previously month, reaching its lowest price level in two years. Because the market recovers, some analysts have made a bullish case for the token but warned of a key level to look at.
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MATIC Hits Two-Yr Low Levels
Over the past few months, MATIC has registered a gentle decline from its one-year high of $1.27. Since July, the token’s price has retraced 20.5%, falling from the $0.55 support zone to the $0.40 mark.
In the course of the August 5 market crash, where most cryptocurrencies plunged by 20%, MATIC fell to a two-year low price of $0.35. This level, last seen in June 2022, represented a 30% decrease from its price initially of the month.
MATIC’s market capitalization also fell by 30.2% through the crash, going from $4.6 billion to $3.5 billion. Since then, the token has lost its spot among the many top 20 cryptocurrencies by this metric. Polygon’s native token currently sits on the twenty eighth largest cryptocurrency, with a market cap of $3.8 billion.
The token has reclaimed the $0.40 resistance level, hovering between the $0.40 and $0.43 price range. Despite the 22% recovery from the crash, the token continues to maneuver inside a spread not seen since June 2022.
Nonetheless, some market watchers consider that this level could possibly be one of the best time to build up MATIC at a low price. On Wednesday morning, an analyst highlighted that the token is “at its weekly support, and the RSI has also bottomed out.”
MATIC’s performance on the biweekly chart. Source: MATICUSDT on TradingView
All Eyes On Key Support Zone
Following this week’s Monday retrace, pseudonym crypto analyst Cryptorphic identified that MATIC hit the lower support zone, set between $0.31-$0.38, “as expected.” The analyst emphasized that the token must hold this level, as if “it fails and breaks down, things could prove poorly.”
To Cryptorphic, if the token maintains above the crucial support zone, it could try to reclaim one other key resistance level on the $0.98 mark. The analyst also set a retest of the token’s all-time high (ATH) price of $2.92 as a long-term goal.
Similarly, one other market watcher identified that Polygon’s native token “bounced perfectly from the lower boundary of the falling wedge pattern.” This suggested that investors could expect growth toward the $0.75 resistance level if the token broke above the $0.465 mark.
Meanwhile, renowned crypto analyst Ali Martinez made a daring prediction for MATIC. In response to Martinez, the token “will melt faces” if the altcoin season kicks off.
MATIC’s chart displays a multi-year descending triangle pattern. Source: Ali Martinez on X
Per the chart, MATIC displays a multi-year descending triangle pattern. A breakout from the upper line of the pattern, set at $0.89, could trigger a large rally to unprecedented highs much like the 2021 run.
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The analyst suggested a 15,169% surge toward the $50 mark if history repeats itself. Nonetheless, he warned investors to not “go ape yet” as a “weekly close below $0.30 would invalidate the bullish thesis.” As of this writing, MATIC is trading at $0.41, a 1.1% drop within the last 24 hours.
Featured Image from Unsplash.com, Chart from TradingView.com