MATIC, Polygon’s native token, recently suffered a significant price decline amid a broader market downturn. The token dropped over 20% in the past month, reaching its lowest price level in two years. As the market recovers, some analysts have made a bullish case for the token but warned of a key level to watch.
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MATIC Hits Two-Year Low Levels
Over the past few months, MATIC has registered a steady decline from its one-year high of $1.27. Since July, the token’s price has retraced 20.5%, falling from the $0.55 support zone to the $0.40 mark.
During the August 5 market crash, where most cryptocurrencies plunged by 20%, MATIC fell to a two-year low price of $0.35. This level, last seen in June 2022, represented a 30% decrease from its price at the beginning of the month.
MATIC’s market capitalization also fell by 30.2% during the crash, going from $4.6 billion to $3.5 billion. Since then, the token has lost its spot among the top 20 cryptocurrencies by this metric. Polygon’s native token currently sits at the 28th largest cryptocurrency, with a market cap of $3.8 billion.
The token has reclaimed the $0.40 resistance level, hovering between the $0.40 and $0.43 price range. Despite the 22% recovery from the crash, the token continues to move within a range not seen since June 2022.
However, some market watchers consider that this level could be the best time to accumulate MATIC at a low price. On Wednesday morning, an analyst highlighted that the token is “at its weekly support, and the RSI has also bottomed out.”
All Eyes On Key Support Zone
Following this week’s Monday retrace, pseudonym crypto analyst Cryptorphic pointed out that MATIC hit the lower support zone, set between $0.31-$0.38, “as expected.” The analyst emphasized that the token must hold this level, as if “it fails and breaks down, things could turn out poorly.”
To Cryptorphic, if the token maintains above the crucial support zone, it could attempt to reclaim another key resistance level at the $0.98 mark. The analyst also set a retest of the token’s all-time high (ATH) price of $2.92 as a long-term target.
Similarly, another market watcher pointed out that Polygon’s native token “bounced perfectly from the lower boundary of the falling wedge pattern.” This suggested that investors could expect growth toward the $0.75 resistance level if the token broke above the $0.465 mark.
Meanwhile, renowned crypto analyst Ali Martinez made a bold prediction for MATIC. According to Martinez, the token “will melt faces” if the altcoin season kicks off.
Per the chart, MATIC displays a multi-year descending triangle pattern. A breakout from the upper line of the pattern, set at $0.89, could trigger a massive rally to unprecedented highs similar to the 2021 run.
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The analyst suggested a 15,169% surge toward the $50 mark if history repeats itself. However, he warned investors not to “go ape yet” as a “weekly close below $0.30 would invalidate the bullish thesis.” As of this writing, MATIC is trading at $0.41, a 1.1% drop in the last 24 hours.
Featured Image from Unsplash.com, Chart from TradingView.com