Polygon (MATIC) is confronting a turbulent market, with its price currently sitting at $0.9045, reflecting a broad correction across the cryptocurrency landscape. This downturn mirrors a significant shift, with a 6% decrease in overall market cap within the last day and leading cryptocurrencies BTC and ETH experiencing over 5.5% corrections in their values.
Cryptocurrencies price heatmap: Coin360
Despite the recent Napoli hard fork aimed at enhancing Polygon’s scalability and reducing fees, MATIC’s momentum has been dampened due to a network outage and a decline in active addresses. These technical obstacles coincide with the token’s decrease by 6.34% on the intraday chart, marking a volatile phase for MATIC’s trading activity.
MATIC’s market dominance is under threat as the price takes a hit in the wake of fading network engagement, evidenced by the falling number of daily active addresses. This key engagement metric, coupled with the bearish ‘death cross’ pattern on the charts, points to potential price corrections ahead. With a majority of holders currently at a loss, the sentiment around MATIC is cautious, if not outright bearish, potentially impeding any immediate bullish recovery.
Polygon (MATIC) Tests Key Support Level of $0.90
MATIC/USD price analysis reveals a downward retracement, with Polygon (MATIC) currently trading at $0.9045. This bearish momentum is reflected by the descending trendline that has been forming since late March, signaling continued selling pressure. The daily chart shows MATIC struggling to breach the resistance formed by this trendline, hinting at a potential for further declines.
MATIC/USD daily chart: TradingView
The Moving Average indicators further underscore this sentiment, with the short-term 9-day MA crossing below the longer-term 21-day MA, a pattern that often suggests a bearish outlook. This crossover just above the current price level adds to the criticality of the next moves MATIC may take.
On the technical front, the RSI stands just below the overbought territory at 63.91, pointing to a market that may soon seek balance, possibly through a price correction. Complementing this, the MACD’s move below the signal line indicates that the bearish momentum may not be over yet.
Investors are now eyeing the $0.8948 level, which stands as immediate support. A break below could intensify the sell-off, pushing MATIC towards lower support zones. On the flip side, if buyers step in and MATIC breaks past the descending trendline resistance, it may invalidate the bearish scenario and potentially lead to a price reversal.
While short-term prospects seem pressured by current market dynamics, industry experts still forecast a gradual climb for MATIC, with projections setting the long-term price goal at an optimistic $10 by 2029. Investors are closely monitoring these developments, balancing the present bearish indicators against the predicted long-term growth. For now, the focus remains on whether MATIC can find firm footing and recapture the $0.9301 level as a foundation for future advances.
