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During the second half of last year, while the market was fluctuating, the price of MATIC Coin remained strong. However, things have not been going well since the second quarter of this year. It is not wrong to say that interest has decreased with the introduction of many new layer2 solutions. So, what does the current situation indicate for MATIC Coin?
Polygon (MATIC) Price
At the time of writing, the price of MATIC Coin finds buyers at $0.51. BTC, on the other hand, is above the $26,600 threshold. About 3 days ago, MATIC price experienced a strong breakout from the $0.6 region. So, what do the current data tell us? Readings on the daily chart indicate a downward trend. The price fell below a declining resistance line since February 28th, which was the highest level of the $1.57 peak in 2023. The decline caused the break of the $0.60 horizontal support area and was confirmed as resistance on August 29th.
The confirmation coincided with the last touch of the declining resistance line. Then, the annual bottom was reached and the price continues to stay in this area. Since the line is in place, the price of MATIC has dropped by 67% in 208 days. If the selling pressure continues, the price could drop to $0.34, eroding another 33%.
MATIC Coin Predictions
Although the price movement is steadily declining, the RSI provides hope. The bullish divergence indicates that a short-term increase in momentum could push the price higher. On the other hand, Elliott Wave readings on the daily chart indicate that the downtrend will continue. Technical analysts use Elliott Wave theory to determine the direction of trends by studying recurring long-term price patterns and investor psychology. The most likely scenario shows that MATIC is in the fifth and final stage of the downtrend that started in February. The shape of the fourth wave strongly supports this interpretation.
The fourth wave is trapped within a rising parallel channel, which is a common feature in corrective movements. If the downtrend continues, MATIC is expected to complete its fifth and final wave at $0.41. There is also support at just below this region, at $0.34.
In conclusion, we may see a possible drop to $0.4 and then a significant recovery. However, for this to happen, the $0.6 level needs to be surpassed.
