Polygon (MATIC) battles with $0.95: Is another drop coming?
Polygon is a layer two scaling platform on Ethereum architecture. It combines the proof of stake and plasma framework to resolve the scalability issue that negatively impacts the blockchain industry. MATIC is the native coin of the Polygon network. While writing this analysis, the price of Polygon is trading around $0.88. Since July this year, it has been consolidating between $1 and $0.7.
The current price of MATIC is in that range so we can expect further consolidation in the short term. However, on the daily chart, candlesticks are forming around the baseline, while MACD and RSI suggest bearishness for the short term. $0.8 is the crucial support, so it might not break this level in the next few weeks.
It is interesting to note that MATIC’s price recovered on the next day after hitting a low of $0.75 due to FTX liquidity crisis news. Though a downtrend follows it till the support level, all these price actions suggest that $0.8 is a crucial level for the short term. Based on Polygon MATIC price prediction, traders should accumulate more coins around that level with a target of $1.
The weekly chart has been forming higher highs and higher lows. The previous low was $0.73, and the recent weekly low was $0.8, which suggests a bullish momentum for the long term. Other popular technical indicators, such as MACD, are bullish with green histograms, and RSI is over 40, which suggests a strong uptrend in the next few years.
Based on the technical chart, if you are going for a short-term profit, then $0.8 is a better level to buy MATIC USD with a target of $1. Otherwise, if you have a longer horizon, you can accumulate more coins around the current price.
Indeed, Polygon is a leading layer two scaling protocol with a wide range of use cases. Still, if you are investing in MATIC, you cannot claim the profit of Polygon because MATIC is a native token, and the price will depend on the supply and demand of the Polygon network. The MATIC price growth will depend on adopting the Polygon network in real-world infrastructure.
However, most other cryptocurrencies were volatile in the last two months, and it will continue in the first half of next year, so you should check the price action closely and book profit at the right time. Any significant news can disrupt fundamental and technical analysis.
