- Polygon’s MATIC is back below the $1 price level.
- The asset appears to be retesting a multi-month range.
- MATIC’s recent price drop follows a market-wide correction.
After a whirlwind run in recent weeks primarily led by excitement around inflows to spot Bitcoin ETFs and, most recently, the Ethereum Dencun upgrade, Polygon’s native token MATIC, like the rest of the crypto market, appears to be slowing its roll.
After running to yearly highs at $1.29 moments after the Dencun upgrade, the price of MATIC has tanked sharply to trade below the $1 price point for the first time in 2 weeks.
Could this be the beginning of a prolonged downturn, or is it just a healthy correction?
Polygon (MATIC) Retests the Range
Over the past 24 hours, MATIC has tanked about 12.5% from highs of around $1.04 to lows of around $0.91, trading below the keenly watched $1 price point for the first time since March 5.
Source: TradingView
At the time of writing, the asset remains below the $1 price point but has rebounded from the lows to trade around $0.95. How far this momentum can go remains to be seen. Still, the price action follows a TD sequential buy signal highlighted by prominent crypto analyst Ali Martinez on the asset’s 4-hour candle chart.
Zooming out to focus on MATIC’s weekly candle chart shows that the asset is retesting the multi-month range between $0.75 and $1, which it broke out from at the end of February 2024.
Source: TradingView
How the current weekly candle closes will likely confirm whether the recent price drop is a healthy bull market correction or the beginning of a prolonged market downturn.
A close of the candle above the range, signaling a rejection, could foreshadow a move to fresh highs after a clear retest. However, a close of the candle below the former range high could see MATIC’s price chart a path to lows to around $0.75.
The fierce battle between bulls and bears could see MATIC’s price tightly range over the next few days as the market participants struggle for dominance.
On the Flipside
- At current prices, Polygon’s MATIC remains close to its 2024 opening price of about $0.97.
- Aside from MATIC, most major crypto assets have recorded significant price drops in the past 24 hours.
Why This Matters
The $1 price point remains a key psychological level for MATIC. The asset’s recent break below the critical level threatens to undermine its recent rally.
Read this for more on Polygon MATIC’s recent price action:
Polygon MATIC Reclaims $1, but Can It Hold out This Time?
Learn about Libre chain:
What Polygon (MATIC)-Powered TradFi Layer 2 Brings at Launch
