Polygon’s MATIC token has seen its price decline over 8.5% this past week, making it one of the biggest losers among the top 20 cryptocurrencies globally. MATIC has struggled to regain positive momentum and remains stuck around the key $0.50 level.
Investors are becoming increasingly impatient with Polygon’s lackluster price performance. Despite holding above $0.50 so far, some analysts believe a break below this important psychological support looks imminent.
As noted by one TradingView expert, the downtrend that started on October 13 has MATIC trapped in a falling channel, with potentially more downside ahead before any relief rally. The analyst points to possible targets around $0.5497 on the upside but warns that a drop towards $0.4998 looks more likely in the near-term. They advise using a stop loss on any positions and considering a trailing stop strategy.
Data from altFINS paints a similarly cautious picture for MATIC in the short term. Their analysis shows the token recently broke down from a Rising Wedge pattern, a bearish indicator. Although the $0.50 support level held in September and June, upside appears limited with the overall trend still pointing down.
Source: altFINS – Start using it today
Key takeaways from altFIN’s outlook:
- Momentum is bearish based on MACD and RSI (below 45)
- Nearest support at $0.50, resistance at $0.75 and $1.00
With technicals weak and investor sentiment souring, Polygon will need a significant catalyst to emerge from its recent slump. Until supportive news comes along, MATIC looks vulnerable to further declines as holders run out of patience. The coming days will be crucial in determining whether Polygon can bounce back or if lower support levels will be tested.
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