MATIC: experts warn of key support level
MATIC, Polygon's own token, has recently fallen significantly in value amid a broader market downturn. The token has fallen in price by more than 20% over the past month, reaching its lowest price level in two years. As the market has recovered, some analysts have expressed bullishness on the token, but have warned of a key level to watch out for.
MATIC has hit a two-year low
MATIC has recorded a steady decline over the past few months from a one-year high of $1.27. Since July, the token's price has retreated 20.5%, falling from the $0.55 support zone to the $0.40 mark.
During the Aug. 5 market crash, when most cryptocurrencies fell 20%, MATIC fell to a two-year low of $0.35. This level, which was last seen in June 2022, represents a 30% drop from the price at the beginning of the month.
MATIC's market capitalization also fell 30.2% during the crash, going from $4.6 billion to $3.5 billion. The token has since lost its place among the top 20 cryptocurrencies on that metric. Polygon's own token is currently the 28th largest among cryptocurrencies with a market capitalization of $3.8 billion.
The token has regained the resistance level of $ 0.40, oscillating between the price range of $ 0.40 and $ 0.43. Despite recovering 22% after the crash, the token continues to move in a range not seen since June 2022.
However, some market watchers believe this level may be the best time to accumulate MATIC at a low price. On Wednesday morning, an analyst emphasized that the token is “at its weekly support and the RSI has also bottomed.”
All eyes are on a key support zone
After recovering on Monday this week, a crypto analyst under the pseudonym Cryptorphic noted that MATIC has reached the lower support zone set between $0.31-$0.38, “as expected.” The analyst emphasized that the token should hold this level because if “it fails and breaks, things could turn out badly.”
For Cryptorphic, if the token holds above the critical support zone, it could attempt to regain another key resistance level at $0.98. The analyst also set a retest of the token's (ATH) record high price of $2.92 as a long-term target.
Similarly, another market watcher noted that Polygon's Native token “bounced perfectly off the lower boundary of the falling wedge pattern.” This suggests that investors can expect a rise towards the $0.75 resistance level if the token breaks above the $0.465 mark.
Meanwhile, renowned crypto analyst Ali Martinez made a bold prediction for MATIC. According to Martinez, the token will “melt faces” if the altcoin season begins.
The chart of MATIC displays a multi-year descending triangle pattern. A breakout of the pattern's upper line, set at $0.89, could trigger a massive rally to unprecedented highs similar to the 2021 run.
The analyst suggested a 15,169% rise to the $50 mark if history repeats itself. However, he cautioned investors to “don't monkey around just yet” as “closing the week below $0.30 would disprove the bullish thesis.” As of this writing, MATIC is trading at $0.41, down 1.1% over the past 24 hours.$MATIC
