It is no secret that cryptos corrected heavily in the past week. Cryptocurrencies that performed really well in the past months are the ones that got hit the most. Polygon MATIC is one of those cryptocurrencies that made 100% gains since July 2022. However, MATIC retraced around 20% in the past 7 days. Why did MATIC prices collapse? Will MATIC go back up? Let’s analyze in this MATIC price prediction.
What is Polygon MATIC?
A scaling approach for Ethereum is shown by the blockchain network Polygon. The goal of Polygon is to make Ethereum transactions easier and less expensive. It takes advantage of layer 2 sidechains, which may more effectively spread out the heavy transaction load among other chains. The name of the network token is MATIC. In addition to participating in the proof-of-stake consensus method, it is used to pay transaction fees. The Polygon network was once known by the acronym MATIC. Future goals for Polygon include becoming a standalone multi-chain network. As “Ethereum’s Internet of Blockchains,” Polygon calls itself.
MATIC Prices Collapse – What Happened?
Polygon started its uptrend back in June 2022 after reaching the bottom price of $0.33. From there, prices increased steadily until they reached the important psychological price of $1. In a previous article, we placed important targets for MATIC in case prices managed to breach the $1 higher. However, this did not happen.
The crypto market took a turn to the bad side, as crypto prices slid on average around 12% since the past week. MATIC having made more than 50% in the past few weeks was amongst the cryptos to adjust heavily, losing as much as 20% in the past 7 days alone. This made MATIC drop to the current price of around $0.78. In fact, this is an important price for MATIC, as it consolidated briefly before it chose its path (yellow circles in figure 1).
MATIC Price Prediction – Will MATIC reach 1$ again soon?
With the current market sentiment, it is a bit hard for MATIC to reach the psychological price of 1$ in the short term. This is due to several reasons, such as the overall crypto market correction happening, along with the reduced hype around Ethereum’s merge. If the crypto market as a whole continues to be bearish, we expect MATIC prices to fall and reach the next target of $0.60.
Another case scenario might be a slight rebound in prices. Plotting the Fibonacci retracement shows a price adjustment towards a price of $0.90. For this to happen, on the other hand, we need to see MATIC breach the $0.80 price area as a first step. This scenario might be hard to realize as the current sentiment in the crypto market tends to be more towards the panic side, which instigates fear and panic selling. Things might change when the merge date comes closer, however, and we at CryptoTicker will make sure to cover the events as they unfold. Make sure to follow us on Google News to stay updated on the latest price predictions.
