- Polygon (MATIC) is back in the red.
- The price dip follows a broad market correction.
- The asset may still have some room to fall before reversing.
MATIC, the native token of the Polygon PoS blockchain, shot back into the spotlight over the past week amid a blistering 30% rally. While the rally had hinted at the beginning of a massive recovery after months in a rut, observers have been given pause for thought as the asset’s price has now relinquished most of its gains and retreated below a key psychological level.
Where will MATIC likely go from here?
Polygon (MATIC) Tanks 11%
Polygon’s MATIC is back in the red. The asset has again retreated below $0.5 to trade near the $0.45 price point when writing, representing an over 11% decline in the past 24 hours per CoinMarketCap data.
MATIC’s price correction follows a broader market correction that has seen Bitcoin (BTC) and Ethereum (ETH) posting 5.6% and 7.9% losses over the past 24 hours, with BTC again trading below the $60,000 price point at the time of writing.
While analysts are divided on the catalyst for the recent market correction, CoinGlass data suggests that over $330 million of crypto positions have been liquidated in the wipeout.
Is a Polygon (MATIC) Rebound Likely?
Following the recent market correction, MATIC’s price now appears to be moving to retest the trend line of its recently broken months-long downtrend, which may suggest more room to the downside. Before this retest, however, the asset could find support around the $0.43 price point, which had previously served as resistance.
‘MATIC’s rebound chances will likely depend on how its price reacts at these levels.
From a fundamental perspective, the asset may have some tailwinds in the short term, with the highly anticipated MATIC to POL upgrade scheduled for September 4. Polygon developers have tipped to upgrade to transform MATIC into a hyperproductive token that allows holders to earn rewards across multiple blockchains.
On the Flipside
- It is typically normal for assets to have price corrections after extended rallies as traders take profit.
Why This Matters
MATIC’s price has largely underperformed the broader crypto market over the past year, significantly impacting investor interest. Continuing this downturn could paint a worrying picture of the network’s future.
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