MATIC price correction could be temporary, Polygon has potential to resist sell-off
|- MATIC price is struggling to hold above the $0.70 level in the broad crypto market sell-off triggered by the FTX crash.
- Dogecoin and MATIC are leading the decline in the market-wide crypto bloodbath.
- Analysts believe MATIC price has bullish potential and could make a comeback above $0.80 and resistance at the $0.87 level.
MATIC price has the potential to break out of the bear market. While the domino effect of FTX exchange collapse brought most of the crypto market to a standstill, MATIC, the token of the Ethereum scaling solution Polygon, is preparing for its recovery.
Also read: XRP bucks bear market trend as Ripple gathers support against the SEC
MATIC price prepares for a recovery after crypto bloodbath
Polygon (MATIC) price witnessed a drawdown after the news of FTX’s collapse and subsequent bankruptcy. Since then the FTX contagion spread and wiped out billions from crypto market capitalization.
MATIC price is trading close to its support around $0.80, with resistance at $0.87. Analysts believe the token of the Ethereum scaling solution has the potential to buck the trend and make a comeback.
Most altcoins lost key support, trading at 90% losses
In the ongoing crypto bear market, most altcoins in top 30 cryptocurrencies by market capitalization, have plummeted below key support. Printing double-digit losses for holders, altcoins are struggling to bounce back to pre-FTX crash levels.
Brian Bollinger, a crypto analyst believes that MATIC will make a comeback after initially falling. MATIC price is currently trading at the $0.78 mark, but, says the analyst, the last three days’ rising volume indicates that losses could extend further. If traders keep selling, Polygon could breach support at $0.76 and nosedive lower.
MATIC/USDT price chart
MATIC price decline could result in a retest of the combined support of $0.70 and the 0.618 Fibonacci retracement level. But then Brian believes this level is strong enough for MATIC to make a turnaround and resume the prevailing uptrend.
Analysts at Investors Observer (IO) have set a target of $0.87 for MATIC price. These experts argue that MATIC price has the bullish potential to climb to resistance at $0.87. Over the last five days, analysts gave MATIC a bearish rating on the Investors Observer sentiment score, a measure of Polygon’s performance over the last five days (both volume and price).
Far from this being negative as might be assumed, however, the IO analysts consider it a sign Polygon price is ‘oversold’ and that it is therefore the ideal time to buy the dip in MATIC.
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