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Price Analysis

Will MATIC Prices Drop to $0.90 or Surge Reaching a New All-Time High of $10?

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Polygon has its place high ups the crypto ranking. It has established itself as a go-to platform for project planning to launch on a layer-2 (sidechain) while being “in touch” with Ethereum.

For Polygon’s value proposition—scalability and ultra-low transaction fees–, MATIC is one of the top-performing assets.

Although its market has sharply contracted in the past few weeks, it is still within the top 25 most valuable projects globally and watched closely.

Thus far, the Polygon ecosystem has 44 active DeFi projects and is the second most active behind Ethereum, surpassing the Binance Smart Chain (BSC).

Polygon (MATIC) Market Performance and Price Status

At the time of writing, MATIC remains steady on the last trading day.

Since the crypto market is relatively stable despite the dump of September 7, MATIC is also stable week-to-date.

Notably, buyers failed to build on the rejection of lower lows a day after September 7 draw-down.

Therefore, technically, this is bearish for MATIC prices—and could be a precursor for even more losses in the days ahead.

Besides the low trade range, subsequent bull bars are with comparatively low trading volumes.

Polygon Price Daily Chart for September 10

Accordingly, the September 7 bear engulfing bear bar could be the guide for the short-term price action. Although of considerable significance, the odds of $1—a psychological level–failing to contain bears would be high, setting the pace for further draw-down.

Overall, MATIC may drop to as low as $0.85 in the immediate term—the 78.6 percent Fibonacci retracement level of the late July to September 2021 trade range.

Nonetheless, there might exist opportunities for optimistic buyers should MATIC prices expand above $1.8 in defiance of this selling pressure.

In that case, MATIC bulls would deservedly expand towards $2.2—retesting all-time highs.

Still,

Will Polygon outperform Bitcoin?

From the MATIC/BTC chart’s daily chart, one trader thinks MATIC could outperform BTC in the medium term.

Polygon versus BTC

In the analyst’s view, the coin is on the cusp of breaking strongly above the descending, multi-week bull flag. This would be the impetus for the coin to surge back to all-time highs of mid-May 2021.

At the time of writing, MATIC prices are at the apex of the bull flag—a zone where most breakout do happen.

In this case, therefore, the probability of MATIC break away to the upside remains high.

Even so, risk-on traders should take precautions, only waiting for a clear signal—a high volume bar—breaking in either direction before committing.

In a dicey price action, a definite trend definition would better serve a trader’s interests.

MATIC is Bearish

And caution prevails in the market. Not everyone is satisfactorily convinced of more upswings in the immediate term.

Another trader on Trading View says Polygon prices are bearish and may sink below $1.

Polygon MATIC below $1

As mentioned earlier, $1 is a psychological support level. Depending on how MATIC prices react at this mark, prices could either surge higher or dump.

In the analyst’s view, the odds of prices recoiling back to $0.90 remain high. This would offer more opportunities for long-term HODLers and traders.

MATIC Holding Support

On YouTube, Crypto Maximalist said the recent dip is welcomed and would be the foundation of more gains in weeks/months to come.

It would be imperative for buyers to hold steady above $1 and the 20-day moving average in the analyst’s view.

The resulting accumulation would be the fuel driving MATIC above September 2021 highs to a new all-time high above $2.2—even $10.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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Passionate about Blockchain, Crypto, Blockchain, and Bitcoin. Excited of what lies ahead. Advocating adoption. HODLer!

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