MATIC Price Prediction: Polygon Investors Strap Up Ahead Of Another Gigantic Slump To $0.3
- MATIC price downfall seems unstoppable, especially if the 200 SMA support fails to hold in the short term.
- A general decrease in on-chain activity hints at declines holding steady toward the robust support at $0.3.
Polygon is among the worst-hit cryptocurrencies following a gust of bearish wind sweeping across the market on Tuesday. Data by CoinGecko shows that MATIC has plummeted by more than 17% to exchange hands at $0.64 at the time of writing.
A spike in trading volume across all the exchanges shines a light on the sellers’ increasing aggressiveness. Therefore, investors should expect another colossal drop in the absence of robust support, perhaps to $0.3.
MATIC Price Holds At The Edge Of High Cliff
The 200 Simple Moving Average (SMA) currently functions as the short-term support on the daily chart. However, there is a high chance this buyer congestion will not hold for long. Therefore, it is imperative to plan for the following tentative anchor at the descending parallel channel’s lower edge.
If the pattern’s support remains intact, we expect the bulls to take control and perhaps push for gains above $0.7. On the other hand, the Moving Average Convergence Divergence (MACD) adds credence to the bearish narrative, especially with a recently flashed sell signal. Besides, a daily close under the descending parallel pattern may validate an extended breakdown to $0.3.
MATIC/USD daily chart
Declining network growth has validated the bearish outlook. According to Santiment, this metric tracks the number of addresses created on the network each day. The metric illustrates whether Polygon is losing or gaining traction over some time.
For instance, only 1,954 addresses are reported to have joined MATIC on July 19, down from a 30-day high of nearly 3,600. Polygon’s price tends to drop in tandem with the falling network growth. Therefore, if the number of addresses fails to improve in the near term, we can anticipate another price drop, validating the target of $0.3.
Polygon network growth model
Subsequently, any attempts for recovery will likely be thwarted in the seller congestion zone between $0.64 and $0.66. The IOMAP model by IntoTheBlock shows that 44 addresses previously bought 1.3 billion MATIC in this range. It is imperative that trading above this zone will be challenging and may result in another rejection.
Polygon IOMAP model
On the downside, Polygon sits on top of fragile support areas. Thus, with a slight push from the bears, losses galore will descend on MATIC while the most formidable support lies at $0.3, according to the daily chart.