Polygon MATIC has been in a free-fall ever since the beginning of 2022. Like most cryptocurrencies, MATIC lost more than 50% in value after reaching an all-time high price of $2.9. Recently, MATIC dropped and reached the strong psychological price of 1$. Is it a good idea to buy MATIC price 1 $? Will MATIC rebound higher or continue to drop further? In this MATIC price prediction article, we analyze MATIC from a technical perspective. Let’s go 😉
What is Polygon MATIC?
Polygon is a scaling solution for the Ethereum network. The Ethereum blockchain was the first network to introduce smart contracts, making Ethereum a leader in decentralized applications to this day. However, Ethereum has struggled to keep transactions fast and efficient as the number of smart contracts has increased. This is how the Polygon network came about.
Polygon is a layer 2 solution in which a second level and numerous sidechains offload the Ethereum blockchain. The so-called “plasma chains” from Polygon are particularly important. These Ethereum sidechains offload the blockchain’s smart contracts. Developers of decentralized applications can outsource their dApps and smart contracts to the Polygon network if required. This solves Ethereum’s scaling problems.
Can MATIC Price drop lower than 1$?
MATIC price might break the $1 support lower. If this happens, we expect it to drop to the next support at $0.82. Then there could be an upswing. With the help of this move, the price could revisit the $1 price. However, we see prices around $0.69 in case prices continue on their downtrend. This is also where the last major low in the Polygon price chart image is located, so we might see some buyers there.
If you were planning to buy MATIC, it would be advisable to place a stop-loss below 1$ depending on your risk appetite. Make sure that this stop-loss is not too tight, as you might get stopped out from fakeouts.
Can MATIC Price rebound higher?
Now that the Polygon price has reached the target of $1, we expect the price to rise for the time being. We expect the price to rally to the former $1.33 support to confirm the break. As a result, the price could rise by around 25% before a renewed descent could occur. The rebound might last until the current $1 support. In case prices fail to consolidate and rebound, the break of the MATIC price 1 $ lower should occur as explained earlier.
