The Polygon price has lost momentum. After surging to an all-time high of $2.7356 in May, the coin’s price declined by 72% to $0.7400 and then rebounded by 231% and faded again. Today, MATIC is trading at $1.3370, bringing its total market capitalisation to more than $8.6 billion. It is the 17th biggest cryptocurrency in the world.
What happened: In May, Polygon was one of the best-performing cryptocurrencies in the world, helped by the overall fear of missing out (FOMO). The coin also rose after more blockchain projects like Aave embraced the network. In total, more than 400 Ethereum-built projects have moved to the network.
Polygon price performance is also reflected in how the rest of the cryptocurrencies are trading. Most coins like Ethereum and Bitcoin have struggled to bounce back as concerns about regulations and high-interest rates remain.
It has also declined because of falling hype. A closer look at the search terms in social media and search engines shows that the trend has declined. So, what next for the MATIC price?
Polygon price forecast
On the four-hour chart below, we see that the Polygon price has struggled substantially in the past few weeks. The coin has formed a descending channel that is shown in blue. It is currently between this channel and slightly below the 25-day and 50-day moving averages. The Relative Strength Index (RSI) has also dropped to about 35.
Therefore, at this point, the path of least resistance in the near term is lower. Still, due to how this channel looks like, we can’t rule out a situation where the price roars back. To do that, bulls need to push it significantly above the upper line of the descending channel.