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MATIC price prediction: Will Polygon's expansion to 288 million Indians prevent a downturn?


www.fxstreet.com 02 November 2022 00:20, UTC
Reading time: ~2 m

  • MATIC price inched closer to recovering $1 this month but failed to reclaim it.
  • A drawdown will invalidate the bullish signal minimizing possible profits for MATIC holders.
  • Polygon will be targeting onboarding billions of Indians by establishing a solid web3 presence in the country.

MATIC price painted some gains over the last three weeks; however, the asset is again flashing bearish signals on the chart. The broader market is not very supportive either, with the total crypto market cap still struggling to close above $1 trillion. Regardless, Polygon is pushing its expansion, setting its focus on India now.

MATIC price headed into a correction

MATIC's price blew up this month after declining through August and September, but a lot did not change. The incline was followed by red candles reducing the price by 6.86%, while on the macro scale, the altcoin remained stuck in consolidation. The $1 resistance remains solid, with the current trading price of $0.87 standing far below.

From here on, the narrative mostly seems bearish as price indicators hint at ensuing corrections. The Moving Average Convergence Divergence (MACD) is looking at a bearish crossover over the next few days as the signal line (red) moves over the indicator line (blue). Additionally, the Parabolic SAR indicates an active downtrend with the black dots of the indicator placed above the candlesticks.

If prices fall from here on, MATIC could fall to test $0.70 or lower but will need to maintain its presence above the $0.62 support line. If this critical support is broken, panic selling could ensue, but if MATIC bounces off it, consolidation will continue.

However, if bullish cues born out of external factors push the price up, MATIC will mostly breach through the six-month-long resistance level to flip $1 into support.

TradingView ChartMATIC/USD 1-day chart

These external bullish signals could arrive from Polygon's continued attempts at expansion.

Polygon taps India

The blockchain network announced that it intends to minimize the complexity and complicated user experience of web3 through Sequence and Onmeta's partnership.

This will allow Indian users of games and apps built with Sequence to make web3 purchases with INR via UPI (Unified Payments Interface). Explaining the same, the announcement read,

"All transactions are denominated in fiat with USDC and include cheap transaction and gas fees. The abstraction of fees is an additional UX improvement — users do not require crypto in their wallet or need to hold tokens to pay for gas or leave the web3 game or app user interface to complete any transaction."

Since India's crypto ownership rate at 29% is far above the global average of 15%, the country holds much potential for web3 developers. And Polygon intends to be the first and most established network there.

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