MATIC, Polygon’s native token, recently suffered a significant price drop amid a general market decline. The token fell by over 20% in the past month, hitting its lowest price in two years. As the market recovers, some analysts have offered a bullish forecast for the token but warned of a key level to watch.
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MATIC reaches 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 declined by 20.5%, falling from the $0.55 support zone to the $0.40 mark.
During the August 5 market crash, which saw most cryptocurrencies plummet 20%, MATIC fell to a two-year low price of $0.35. This level, last seen in June 2022, represented a 30% drop from its price at the beginning of the month.
MATIC’s market capitalization also fell by 30.2% during the crash, from $4.6 billion to $3.5 billion. Since then, the token has lost its place among the top 20 cryptocurrencies by this metric. Polygon’s native token is currently ranked 28th among the largest cryptocurrencies with a market capitalization of $3.8 billion.
The token has reclaimed the resistance level of $0.40 and is now fluctuating between $0.40 and $0.43. Despite the 22 percent recovery from the crash, the token continues to trade in a range not seen since June 2022.
However, some market observers believe 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 the important support zone
Following the retracement on Monday this week, pseudonymous crypto analyst Cryptorphic pointed out that MATIC had reached the lower support zone between $0.31 and $0.38 “as expected.” The analyst stressed that the token must hold this level because if “it fails and collapses, it could end badly.”
According to Cryptorphic, if the token holds above the crucial support zone, it could attempt to reclaim another key resistance level at the $0.98 mark. The analyst has 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 “perfectly bounced off the lower boundary of the falling wedge pattern,” suggesting that investors could expect growth towards the $0.75 resistance level if the token breaks the $0.465 mark.
Meanwhile, renowned crypto analyst Ali Martinez made a bold prediction for MATIC. According to Martinez, the token will “melt faces” when the altcoin season begins.
According to the chart, MATIC is exhibiting a multi-year descending triangle pattern. A breakout from the upper line of the pattern, which is located at $0.89, could trigger a massive rally to unprecedented highs similar to the 2021 run.
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The analyst is predicting a 15,169% rally to the $50 mark if history repeats itself, but warned investors not to “go crazy yet” as a “weekly close below $0.30 would invalidate the bullish thesis.” At the time of writing, MATIC is trading at $0.41, down 1.1% in the last 24 hours.
Featured image from Unsplash.com, chart from TradingView.com
