The crypto market is still in consolidation mode. However, some cryptos managed to increase in prices. Despite low fundamental backings, the technicals behind their price action stand strong. MATIC price is currently trying to recover from its low price, as it reached $0.31 during its bottom in 2022. However, prices managed to recover and almost tripled so far. Can MATIC reach 1 $ soon? Let’s analyze in this MATIC price prediction article.
Polygon is a blockchain network that represents a scaling solution for Ethereum. Polygon aims to enable faster and cheaper Ethereum transactions. It uses layer 2 sidechains, which can better distribute the high transaction load across different chains. The network token is called MATIC. It is used to pay transaction fees and participate in the proof-of-stake consensus mechanism. MATIC was also the former name of the Polygon network. In the future, Polygon wants to become its own multi-chain network. The blockchain describes itself as “Ethereum’s Internet of Blockchains”.
Polygon (MATIC) price has fallen sharply in recent months. This was not due to internal blockchain reasons, but to the onset of the bear market. Polygon (MATIC) price reached an all-time high in December 2021. The price jumped above 2.8 dollars. The all-time high came a lot later than the highs of other cryptocurrencies.
This resulted in heavy losses in the months that followed as the bear market hurt the entire market. By early March, the Polygon price was down about 50% from its all-time high. More heavy losses followed in May and June. The price dropped below $0.40. The price has lost more than 85% since December.
In the past 4 months, MATIC prices managed to come back higher. MATIC increase from its bottom price of $0.31 and reached a current price of around $0.81. This happened while other cryptocurrencies such as Bitcoin struggle to keep their consolidation in check. In fact, Bitcoin is currently in a consolidation mode delimited by a low price of $18,500 and a high price of $22,500.
After an uptrend that pushed MATIC prices higher, we currently see a brief consolidation for MATIC as well. This consolidation is delimited by a high price of $1 and a low price of $0.70. In figure 2 below, we can clearly see how MATIC prices are currently consolidating.
If we look back at figure 2, we can clearly see how MATIC prices managed to break the upper trendline delimited by a price of 1 $. This happened back in mid-August, when the market was trying to recover. However, MATIC prices specifically needed an adjustment as part of profit-taking.
In order for MATIC to reach 1 $ again and breach it, prices need to reach the 50% Fibonacci retracement level shown in figure 3. This level coincides with a price of around $0.86. If this level is successfully breached, we can estimate MATIC reaching 1 $ and continuing its uptrend.
However, if MATIC fails to regroup higher and breaches the price of $0.70, we risk seeing MATIC fall back towards its previous price level of around $0.54.
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