Polygon Matic has lost more than 35 percent of its value this year. The prices are also likely to continue with the downfall, two months after the crypto reached its all-time high of $2.92 on December 27, 2021.
Why Polygon is losing value
The current Polygon Matic price drop has been fueled by two main factors, competition in the Ethereum supported blockchains and the recent bearish cryptocurrency market. Looking at the prices for the past two months, the impact of the bearish market has taken a bigger share of contributing to the drop.
Bitcoin, for instance, at one point dropped to almost 50 percent from its all-time high. Polygon Matic, being an altcoin that is positively correlated with bitcoin, also followed the cryptocurrencies trend, which resulted in a massive drop in its price.
Polygon Matic Price Prediction
Polygon Matic price has remained relatively stable in today’s trading session, gaining less than one percent since the markets opened. The cryptocurrency also recently hit a long-term support level of $1.26 and has since bounced to the current trading price of $1.61.
Looking at the daily price chart shown below, the prices are in a bearish move, and the current surge to the upside is a small correction of 26 percent. Based on the chart, I expect the prices to continue with their bearish move. This is because, based on the chart, the current upward move has not been aggressive enough to indicate that it is a trend reversal. The prices also do not have the momentum of a cryptocurrency that is reversing the trend. Also, looking at the price history, it the cryptocurrency price has had similar lower highs as a result of corrections.
Using the Pitchfork technical tool, I expect the prices not to move further from the mid-line, and the prices to trade below the line. I also expect the prices at some point to hit the lower trendline of the pitchfork, which based on my analysis, the point is likely to be the $1.039 support level. This means that I also expect the prices to drop below the support level of $1.26. However, if the prices move out of the Pitchfork technical tool to the upside, my trade analysis will be invalidated. This may mean that the prices are ready for a big push to the upside.