Polygon is one of those great crypto projects that unfortunately lost in value due to the bearish crypto market prices. After almost reaching a price of $3, MATIC prices got crushed and fell to the low of $0.30, losing around 90% in the past 8 months. Today, the crypto market is trying to recover. Is it a good idea to buy Polygon at such cheap prices? Or is it better to short-sell in anticipation of lower prices? Where will MATIC price reach? Let’s assess in this MATIC price prediction article.
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.
Will MATIC Price Crash soon?
Polygon price is currently at the $0.62 resistance. The price has historically found strong support at this level. Now the tide is turning. The chart analysis says: “Support turns into Resistance”. We can observe this behavior again here. As the Polygon price is now testing the former support, the break of the former support has also been confirmed. So it could go one level deeper in the future. In the near term, we expect a descent to around $0.45. There is a sub-support there.
MATIC Price Prediction – Where will MATIC price reach?
Polygon price not only hit the new $0.62 resistance but also formed a double top formation which often creates trend reversals. Due to this double top formation, we are assuming a stronger price loss this week or next week at the latest. The short-term target, for the next few weeks, is the $0.30-$0.38 support zone. As a result, the polygon price could soon drop by another 40%! Now you could optionally build a short position. With this, you could now benefit from falling prices.