By
Steve Muchoki
June 28th, 2024
Polygon (MATIC) price struggles below $0.60 and might fall to $0.50 in July due to bearish market sentiment.
The crypto market has started to show signs of stability after a week of relentless bearish sentiment, offering a glimmer of hope for investors. However, top altcoins continue to struggle. Ethereum (ETH), the leading altcoin, remains locked in a battle to breach the $3.4K resistance level, dragging down other altcoins like Polygon (MATIC).
MATIC price has shown a downward trend, dropping 2.03% in the last 24 hours, according to TradingView. This decline is even more worrying when considering the 37% drop in trading volume, indicating a significant decrease in investor interest. MATIC has lost 22.40% in the past month and 42.76% year-to-date.
MATIC Price Nears Breakout
The MATIC price has been stuck in a triangle pattern on the daily chart since mid-March. This pattern is getting close to breaking out, but the direction still remains uncertain. If the token breaks out the triangle pattern, it could indicate a bullish reversal. Conversely, if it breaks down, MATIC might drop to new lows.
Despite the recent slump, MATIC maintains a respectable position in the cryptocurrency market. With a trading price of $0.5559, a circulating supply of 9.87 billion tokens, and a market capitalization of $5.49 billion, it holds the 19th spot globally.
Interestingly, technical indicators offer mixed signals. The Moving Average Convergence Divergence (MACD) displays a declining red histogram, suggesting continued bearish pressure.
However, a bullish convergence in the near future is possible, hinting at a potential price reversal. Additionally, the Simple Moving Average (SMA) is approaching a positive crossover, indicating a rise in buying and selling activity.
Bullish or Bearish Scenario
If the market recovers momentum, MATIC could break above the triangle pattern’s resistance trendline and trade in bullish territory. Sustaining this upward trajectory could see MATIC test its upper resistance level of $0.690 in the coming weeks.
However, if the bears maintain control, MATIC’s price could plummet towards its critical support level of $0.50 in July. This scenario would be a significant setback for the project and its investors.
The direction of the MATIC price hinges on the broader market sentiment and its ability to overcome the technical hurdles. While the current outlook is uncertain, closely monitoring market forces and technical indicators will be essential to determine MATIC’s future trajectory.