MATIC, Polygon’s native token, has reached its lowest price in two years amidst a broader market downturn. Analysts are now closely monitoring a critical support level that could determine whether MATIC can recover or face further declines.
Points
- MATIC’s price has dropped to a two-year low, sparking concerns among investors.
- Analysts emphasize the importance of holding the $0.31-$0.38 support zone.
- A failure to hold this support could lead to significant price declines.
- Some experts suggest that this level could present a buying opportunity for long-term investors.
- The potential for recovery hinges on maintaining this critical support zone.
Polygon’s native token, MATIC, has seen a dramatic decline, plunging to its lowest price in two years. This downturn comes amid a broader market pullback that has impacted many cryptocurrencies. Over the past few months, MATIC’s price has steadily declined, slipping from a one-year high of $1.27 to a low of $0.35 during the August 5 market crash. This sharp drop represents a 30% decrease from its price at the beginning of the month.
The token’s market capitalization has also taken a significant hit, falling by 30.2%, from $4.6 billion to $3.5 billion. MATIC has now slipped out of the top 20 cryptocurrencies by market cap, currently ranking as the 28th largest cryptocurrency with a market cap of $3.8 billion.
Despite this sharp decline, MATIC has managed to reclaim the $0.40 resistance level, hovering between $0.40 and $0.43. While this 22% recovery from the recent crash offers a glimmer of hope, the token’s future remains uncertain. Market analysts have identified a critical support zone between $0.31 and $0.38, which they believe could be pivotal for MATIC’s potential recovery.
Pseudonymous crypto analyst Cryptorphic has pointed out that MATIC has hit the lower support zone as expected, stressing that maintaining this level is crucial. “If it fails and breaks down, things could turn out poorly,” the analyst warned. However, if MATIC holds this support, it could attempt to reclaim key resistance levels, potentially targeting $0.98 in the long term.
Other market watchers echo this cautious optimism. Some suggest that the current price levels could offer an attractive entry point for long-term investors. An analyst highlighted that the token is “at its weekly support, and the RSI has also bottomed out,” suggesting that MATIC could be positioned for a rebound.
Nevertheless, the risks remain significant. A weekly close below $0.30 would invalidate the bullish thesis, potentially leading to further declines. In contrast, a breakout above the $0.465 mark could signal the start of a recovery, with the potential to retest previous highs.
As MATIC continues to navigate these challenging waters, investors are advised to keep a close watch on these key support and resistance levels. The next few weeks could be critical in determining whether MATIC can recover from this two-year low or face further downward pressure.
解説
- Support and Resistance Levels: The $0.31-$0.38 support zone is crucial for MATIC’s recovery. Breaking this level could lead to further declines, while holding it could pave the way for a rebound.
- Long-Term Investment Opportunities: Despite the current bearish sentiment, some analysts believe that MATIC’s low price could present a buying opportunity for long-term investors.
- Technical Indicators: Indicators like RSI （Relative Strength Index） and support zones are essential tools for predicting potential price movements. The RSI suggests MATIC might be oversold, indicating a possible recovery if the support holds.
- Market Sentiment: The overall market sentiment remains cautious, with investors closely watching key technical levels to gauge MATIC’s next move.