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Technical Analysis

Polygon (MATIC) Price Dropped 9% in One Day – so Where’s It Headed Next?

2 mins
Updated by Geraint Price

In Brief

  • Polygon (MATIC) deviated above the $1.35 resistance area.
  • It broke down from an ascending support line.
  • There is support between $1.06-$1.15..
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The Polygon (MATIC) price could initiate a relief rally before another final drop completes the entire correction.

The MATIC token is the native token of the Polygon network, a scaling solution for the Ethereum blockchain. The MATIC price has increased since bouncing at the $0.77 horizontal support area in the beginning of the year. This led to a high of $1.57 on Feb. 17.

While it initially seemed that the MATIC price reclaimed the $1.35 resistance area, the movement turned out to be a deviation (red circle). Shortly afterward, the price fell below the area.

The weekly RSI is bullish since it has broken out from a descending resistance line and is above 50. However, due to the bearish price action, a fall to the $0.77 horizontal support area is the most likely scenario.

On the other hand, if the MATIC price closes above $1.35, this could lead to an increase toward $2.

Polygon (MATIC) Trading Range
MATIC/USDT Daily Chart. Source: TradingView

Polygon (MATIC) Price Prediction for March: Relief Rally Before Another Drop

The technical analysis from the daily time frame suggests that the correction is not yet complete. However, a relief rally is expected to follow before another final drop. 

There are three main reasons for this:

Firstly, the price has completed a five-wave upward movement (black). What follows afterward is a corrective A-B-C structure.  Secondly, the MATIC price broke down from an ascending support line. Thirdly, the daily RSI is below 50, a sign of a bearish trend.

Therefore, the most likely Polygon price prediction for March is the completion of the A-B-C correction near the 0.618 Fib retracement support level at $1.06. 

If so, the price is currently in the B wave of an A-B-C corrective structure. After an initial relief rally, which completes the B wave, a final drop toward $1.06 is likely. 

A drop below $0.75 would invalidate the long-term bullish price forecast, suggesting that the future price will head toward $0.50. 

On the other hand, an increase above the yearly high of $1.54 would mean that the correction is done and an increase toward $2 is likely. 

Polygon (MATIC) Price Prediction for March
MATIC/USDT Daily Chart. Source: TradingView

To conclude, the most likely Polygon price prediction for March is a relief rally toward $1.40 before a fall to $1.06. An increase above $1.54 would mean that the correction is complete, while a drop below $0.75 would mean that MATIC has begun a new long-term upward movement and could fall to $0.50.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.