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The Polygon native token, MATIC, has recently experienced a sharp decline, losing almost 30% of its value within the last month.
Notably, the token reached a local low of $0.30, a level recognized for its historical significance as a key support point. However, after this decline, MATIC showed signs of recovery last Monday, which has led analysts to predict the possibility of a significant rally in the near future.
Key MATIC Support at $0.30
Ali Martinez, a prominent analyst on X, highlighted the importance of the $0.30 support level. He pointed out that while MATIC could see substantial gains if the altcoin season begins, a weekly close below $0.30 would invalidate any bullish predictions.
Martinez’s analysis spans MATIC’s price action over several years, starting from 2021. During this period, MATIC experienced considerable volatility with notable peaks and troughs.
In the initial uptrend from 2021 to 2022, MATIC saw a strong rise, peaking above $2.3. However, from 2022 onwards, the token entered a corrective phase featuring lower highs and lows. This period was marked by a downward-sloping trendline, which MATIC has struggled to break.
As of August 2024, the token’s price has recently touched the 0.618 Fibonacci retracement level. Following this period, Martinez’s chart suggests an aggressive price target of over $57.5188 by mid 2025, representing a potential increase of 15,169.31% from current levels.
Other Analysts Concur
Notably, another analyst, Javon Marks, supports this bullish thesis. Marks predicts a potential climb to new all-time highs and above $3, representing a 558% increase from the local low.
His analysis indicates a bullish continuation pattern, often identified as a flag or pennant formation, which could signal a significant rally if the price breaks out of its current consolidation phase.
Volume Indicators and Short-Term Outlook
Supporting the bullish outlook, volume indicators from Marks’ chart reveal a significant historical pattern. Notably, the volume has hit its support line before surging, suggesting that market participants have been accumulating MATIC during these low-volume periods.
Further analysis from The Crypto Basic indicates that Polygon may be forming a morning star pattern, a bullish reversal signal, from the crucial support level at $0.38. Currently, Polygon trades at $0.409, showing a 1.24% price increase at the start of the week.
This development suggests that if the broader market remains stable or recovers, MATIC could see further gains, potentially reclaiming the $0.50 mark.