Polygon Price Prediction: Will MATIC Reach $1?

Key Insights:

• MATIC is currently down 68% from its all-time high price of $2.92 set on December 27, 2021. 
• The coin has not touched the $1 price level since early May this year. 
• The daily simple and exponential moving averages are giving mostly buy signals. 

In mid-July, MATIC saw its price soar by over 20% after it was revealed that Polygon had been selected to participate in Disney’s Accelerator Program. However, despite its price breaking out of an ascending triangle during that time, MATIC has not touched the $1 price level since early May this year.

A potential spike in selling pressure has limited MATIC’s upside potential and the coin momentarily fell 6% on August 2, impacting its ability to move past its $1 psychological level.

Price Action

As a comparatively new cryptocurrency, MATIC was trading at $0.00263 upon launch in April 2019, with an initial supply of 3.23 billion tokens. Its price rose slightly to $0.03 by the end of that year but it wasn’t until early 2021 that the token started gaining traction, reaching a high of $0.8328 on April 27.

The Polygon crypto skyrocketed in May 2021 going from $0.7868 at the start of the month to $2.4544 on May 18 – a 211% spike in just 17 days. Its price then consolidated, falling to a low of $1.3622 on June 10 and then to $0.6901 by July 20.

MATIC’s price steadily rose again by August of that year, surpassing $1.7 by early September only to close that month at $1.05. However, in December last year, Polygon announced a $400 million acquisition of Mir. Off the back of this announcement, MATIC rallied to $2.5011 on December 22, before climbing to its all-time high (ATH) price of $2.92 shortly thereafter on December 27.

A strong correction followed and the token plummeted to $1.5076 on January 24, 2022 and then to $1.3802 by March 15. This drop could be attributed to Polygon suffering a network outage in mid-March.

The Polygon token tanked again in May during the crypto market crash when it fell to the $0.6 price level. MATIC has since struggled to regain its 2021 highs, although the first half of this year did see some positive price action, the token has been stuck between the $0.05-$0.09 range since May, and even dipped below $0.04 in mid-June.

At the start of this week, the relative strength index (RSI) was showing signs of forming a negative divergence, which indicated that bullish momentum may be weakening. However, the token is currently up over 5% in the last 24 hours and is trading at $0.911535. MATIC ranks 13th in the list of cryptocurrencies worldwide by market capitalisation at $7.2 billion.