Polygon’s native token, MATIC, was once a rising star in the world of cryptocurrency. As an Ethereum scaling solution, MATIC enabled fast and cheap transactions on the Ethereum network. This propelled its price to an all-time high of $2.92 in May 2021. However, as the crypto bear market intensified in 2022, MATIC fell sharply from its peak along with the rest of the market. Its price hit a low of $0.316 in June 2022.
According to recent technical analysis by the YouTube channel Cheeky Crypto, MATIC looks poised for a potential comeback. Their analysis is based on Elliott Wave theory, which sees price movements in terms of recurring patterns. Per this theory, MATIC has likely not hit its final bear market bottom yet. The target low is between $0.1007 to $0.17, with a minimum expectation of re-testing the previous low of $0.316.
Once the bear market does finally bottom out, the analysis outlines a bullish scenario for MATIC’s next cycle. Conservative targets based on a 5-wave Elliott pattern are $4.44 and $12.41. More aggressive targets could potentially take MATIC as high as $46 to $195, although these prices may be less likely.
MATIC’s use case gives it an edge for real-world adoption. As Ethereum continues to dominate in decentralized apps and DeFi, solutions like Polygon that scale Ethereum while retaining its security are in high demand. Additionally, the expected influx of institutional investment and Bitcoin/Ethereum ETF products could provide a catalyst for another crypto bull run.
In summary, while MATIC looks set to fall further in the short term, its long-term growth prospects seem promising. The technical analysis indicates MATIC could once again reach new highs, potentially even exceeding its previous all-time high by 145X or more. For investors with a high risk tolerance, buying MATIC near the bear market bottom could result in massive returns in the next bull cycle. However, crypto investments are highly speculative, so proper due diligence is advised before investing based on these projections alone.
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