MATIC, Polygon’s native token, has recently seen a significant price drop amid a broader market downturn. The token has fallen more than 20% in the past month, hitting its lowest price level in two years. As the market recovers, some analysts have come out in favor of the token but warned of an important level to watch.
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MATIC hits two-year low
Over the past few months, MATIC has seen a steady decline from its one-year high of $1.27. Since July, the token’s price has fallen by 20.5%, falling from the $0.55 support zone to the $0.40 mark.
During the August 5 market crash, where most cryptocurrencies plunged by 20%, MATIC fell to a two-year low of $0.35. This level, last seen in June 2022, represented a 30% to decrease of its price at the beginning of the month.
MATIC’s market cap also dropped 30.2% during the crash, falling from $4.6 billion to $3.5 billion. The token has since lost its spot among the top 20 cryptocurrencies by this metric. Polygon native token It currently ranks as the 28th largest cryptocurrency, with a market value of $3.8 billion.
The token has reclaimed the $0.40 resistance level, oscillating between the $0.40 and $0.43 price range. Despite recovering 22% from the drop, the token continues to move within a range not seen since June 2022.
However, some market observers consider that this level could be the best time to accumulate MATIC at a low price. On Wednesday morning, one analyst highlighted that the token is “at its weekly support and the RSI has also bottomed out.”
All eyes on key support zone
Following this week’s Monday pullback, pseudonymous crypto analyst Cryptorphic pointed that MATIC has reached the lower support zone, defined between $0.31 and $0.38, “as expected.” The analyst emphasized that the token should hold this level, as if it “fails and breaks, things can go wrong.”
For Cryptorphic, if the token holds above the crucial support zone, it could attempt to reclaim another important resistance level at 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 target.
Similarly, another market observer pointed out that Polygon’s native token “has bounced off the lower boundary of the falling wedge pattern perfectly.” This suggested that investors could expect growth towards the $0.75 resistance level if the token breaks above the $0.465 mark.
Meanwhile, renowned crypto analyst Ali Martinez has made a bold prediction for MATIC. According to Martinez, the token will “melt faces” if the altcoin season begins.
According to the chart, MATIC is exhibiting a multi-year descending triangle pattern. A breakout from the pattern’s upper line, set at $0.89, could trigger a massive rally to unprecedented highs, similar to those of 2021.
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The analyst suggested 15,169% outbreak towards the $50 mark if history repeats itself. However, he warned investors not to “go crazy just yet” as a “weekly close below $0.30 would invalidate the bullish thesis.” At the time of writing, MATIC was trading at $0.41, down 1.1% over the past 24 hours.
Featured image from Unsplash.com, chart from TradingView.com