Polygon is a victim of the fact that most utility projects are not doing well right now. There’s hardly any MATIC holder who isn’t wondering, ‘Should I sell or hold?’ The MATIC price action is nothing short of slow as we head into Q3 of 2024.
Since reaching its 2024 yearly high of approximately $1.2 in March, MATIC has shed over 50% of its value, leaving investors frustrated and drawing parallels to the situation faced by XRP holders.
The severity of MATIC’s decline was reflected when the meme coin PEPE briefly surpassed Polygon in market capitalization last month. Although PEPE has since retraced, the incident showed the challenges faced by established utility tokens in maintaining their market position.
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Ethereum ETFs: A Potential Lifeline?
Despite the gloomy outlook, there’s a glimmer of hope on the horizon. The imminent launch of Ethereum ETFs could potentially benefit the entire Ethereum ecosystem, including Polygon, which is closely integrated with the Ethereum network. This development might inject fresh interest and capital into MATIC and related projects.
Price Analysis and Future Outlook
Recent price action shows MATIC struggling to find stable ground. After a period of consolidation between April 12 and June 11, the price experienced another breakdown, triggering a 17% dip. The token appeared to reach a local bottom around $0.515, with subsequent signs of a potential retracement.
Also Read: Fresh Updates on Ripple vs SEC Case – XRP Price Rally Coming?
Short-term projections suggest a possible bullish move towards $0.62. If MATIC can reclaim this consolidation area, we might see a rally extending to $0.76. A break above this level could potentially trigger a more sustained upward movement. However, given the prevailing bearish sentiment, MATIC may face significant challenges in establishing a bullish trend.
Conversely, if the current retracement fails to gain traction and the resistance at $0.62 holds firm, we could see MATIC resume its downward trajectory.
Expert Analysis from AltFINS
AltFINS, a reputable crypto analysis platform, corroborates the bearish outlook for Polygon across short, medium, and long-term timeframes. Their analysis suggests that MATIC’s recent bearish breakout from a sideways channel ($0.65 – $0.75) confirms the downtrend, with a potential revisit to the $0.50 level on the cards.
Source: altFINS – Start using it today
The analysis further notes that MATIC is trading in a sideways channel, indicating market indecision. While momentum indicators show some signs of potential reversal, with the MACD histogram bars rising, the overall trend remains bearish until MATIC can break above its 200-day moving average.
Is MATIC Heading to Zero?
While MATIC’s recent performance has been disappointing, it’s crucial to maintain perspective. The token’s integration within the Ethereum ecosystem and Polygon’s continued development efforts suggest that a complete collapse to zero is unlikely.
The coming months will be critical for MATIC. The launch of Ethereum ETFs, broader market trends, and Polygon’s ability to deliver on its technological promises will all play crucial roles in determining the token’s future trajectory.
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