Published on . Prices and market conditions may have changed since then.
- The Polygon price has rolled over in the last week as investors pour money into the red-hot rivals aiming to topple Ethereum's crown.
The Polygon price has rolled over in the last week as investors pour money into the red-hot rivals aiming to topple Ethereum’s crown. Polygon (MATIC/USD) staged a strong recovery following the selloff in July, gaining more than 180% to a two-month high of $1.7390. However, after failing to clear major resistance, the Polygon price turned lower, losing 25%. Furthermore, the Ethereum scaling platform could be suffering due to its allegiance to the number two ranked Crypto.
Ethereum and Polygon have a tight relationship. Polygon, formerly MATIC, serves to address some of the problems facing the Ethereum network. The easy-to-use layer-2 scaling solution transforms Ethereum into a multi-chain system similar to Polkadot and Avalanche.
However, Ethereum has been stuck in a tight range for the last two weeks. Furthermore, the focus has now shifted to its competitors, including Cardano(ADA/USD) and the blistering-hot Solana (SOL/USD). As a result, the MATIC price has fallen out of favour, losing trend line support. Furthermore, Polygon is facing its next big test on the downside.
MATIC Price Forecast
The daily chart shows that the Polygon price reversed from the horizontal resistance offered by the 16th of June high at $1.7580. This forced MATIC to slide beneath trend line support at $1.4400 and test the 50-day moving average at $1.2888. For now, the average is holding up, and Polygon has mustered a 4% bounce to $1.3718.
However, until the trend is recovered, the price is vulnerable to the downside. The 100 DMA at $1.1801 aligns with several high points in June and July to provide substantial additional coverage on the downside. The important 200-day follows this at $0.9518. However, unless the cryptocurrency market as a whole turns sharply lower, I expect the MATIC price to run into willing buyers on a dip.
On the upside, clearance of trend resistance at $1.4400 brings $1.7580 into focus. Should Polygon surpass $1.7580, targets to the north become the 26th of May high $2.4828, followed by the ATH of $2.8988.
Polygon Price Prediction
For more market insights, follow Elliott on Twitter.