This crypto crash was a harsh one for all cryptocurrencies. None was spared from the heavy sell-off, including stablecoins that are being put to the test. Polygon MATIC was expected to reach the $3 mark in the beginning of 2022, but crashed following the cryptocurrency market’s negative sentiment. What’s next for MATIC? Can MATIC recover soon? Will MATIC reach 1 $ and continue higher? In this MATIC price prediction article, we try to assess the important levels that MATIC might reach.
What is Polygon MATIC?
Polygon is an Ethereum network scalability solution. The Ethereum blockchain was the first to implement smart contracts, making Ethereum the undisputed leader in decentralized applications. However, as the number of smart contracts has grown, Ethereum has struggled to make transactions speedy and efficient. The Polygon network was born out of this.
Polygon is a layer 2 solution that offloads the Ethereum blockchain using a second level and many sidechains. Polygon’s so-called “plasma chains” are particularly crucial. These Ethereum sidechains take the smart contracts off the Ethereum network. If necessary, developers of decentralized applications and smart contracts might outsource their labor to the Polygon network. This addresses Ethereum’s scalability issues.
Why did MATIC crash to $0.68?
All tokens crashed in tandem with the cryptocurrency market. Each token price reached its respective support area. For MATIC’s case, it was no different. MATIC crashed from a high of $1.3 and reached a current price of $0.68. Looking back at figure 1 below, we can see the importance of the strong support delimited between $0.60 and $0.68. Back in July 2021, prices sank also down to this level and corrected upwards soon after.
MATIC Price Prediction – Will MATIC reach 1 $?
Figure 1 clearly shows how the $0.68 represents a strong support for MATIC. Despite prices managing to break lower towards a low of $0.46, they quickly managed to recover back higher. Fakeouts happen often in all capital markets. Traders need to always avoid placing tight stop-losses, or even manage their portfolios when such events occur.
If the market consolidates or even picks up, MATIC is expected to rise back towards $1. This would instigate a 45% rise in prices. Buying MATIC at today’s price is advisable, provided we also place stop-loss prices right around $0.60 to prevent any further losses.
