- Polygon’s MATIC is threatening to break out of an extended downtrend.
- The price move comes as part of a relief rally of select altcoins.
- Analysts have weighed in on the asset’s prospects.
MATIC, the native token of the Polygon PoS chain, is far from its glory days. While the broader crypto market is believed to be in a bull market, the asset has been stuck in a months-long downtrend that has recently seen it trade around two-year lows.
Amid the downturn, however, MATIC may now be showing signs of a resurgence, threatening to break out of the extended rut in a select altcoin rally.
Polygon’s MATIC Jumps Over 20%
Over the past few days, MATIC’s price chart has taken a parabolic shape to the upside as the asset’s price has jumped over 20% from lows around the $0.39 price point on Friday, August 16, to over the $0.48 price point at the time of writing.
Interestingly, this rally has continued over the past 24 hours despite major crypto assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) posting losses. At over the $0.48 price point, CoinMarketCap data suggests Polygon’s MATIC is trading at an 8% premium over the past 24 hours.
Source: TradingView
MATIC is not alone in defying the majors, however, as assets like Tron (TRX), Cardano (ADA), and Avalanche (AVAX) are posting 24-hour gains of over 5%, 4%, and about 6%, respectively. Still, the reason for this separate trend is unclear, with one analyst attributing it to seller exhaustion.
Nonetheless, amid the rally, several analysts have pointed out that MATIC is on the brink of breaking out of its recent months-long downtrend on the daily candle chart, which started in March 2024.
Can Polygon’s MATIC Successfully Break Out?
For a successful break, Polygon bulls would want to see today’s candle close positive and subsequent candles fail to fall back into the trend line. However, Polygon faces near-term resistance at the psychological $0.5 price point. How the asset reacts at this level could determine whether it can continue running or the market excitement will be cut short.
Commenting on MATIC’s recent run, prominent crypto analyst Ali Martinez has warned of a TD Sequential sell signal on the asset’s hourly candle chart, signaling a potential short-term correction.
Meanwhile, looking at MATIC’s weekly chart, Alex Meurer has suggested that the asset could make one last dip toward the $0.29 to $0.32 price range before taking off to new highs.
Should MATIC’s break out hold, most analysts believe the asset will likely surge to at least the $1 price point.
On the Flipside
- A potential fakeout could see MATIC seemingly break out of the trend only to reverse soon after.
- Crypto market rallies that are not led by Bitcoin are often unsustainable.
Why This Matters
Amid Polygon MATIC’s recent struggles, most asset holders have been left with their bags in the red. Recent price action, however, suggests that a potential reversal in this woeful trend may be at hand.
Read this for more on Polygon’s MATIC:
Is Polygon (MATIC) on Recovery Path After Hitting Yearly Lows?
Coinbase has weighed into the debate over Ethereum’s viability. Read more:
Why Fears of Ethereum’s Demise Are Greatly Exaggerated: Coinbase
