Following the recent Bitcoin (BTC) downturn, altcoins, including Polygon (MATIC), have been forced to halt their rallies, with BTC failing to reclaim the $44,000 mark. However, the price holding above $40,000 has prevented significant support levels in altcoins from being lost, leaving the question of MATIC’s future movements and whether its rally will resume.
Since early last year, MATIC Coin’s price has been lingering below a decreasing trend line that has been in place for roughly 730 days, with the most recent test occurring last week. Such long-term structures can suppress price movements, but a breakout could lead to significant activity. Currently, MATIC is maintaining a critical support level, and with the Relative Strength Index (RSI) not yet dropping below the neutral zone, investors remain hopeful for a rebound.
Crypto analysts are divided on their expectations for MATIC. Crypto Dave believes that if the price does not close below $0.72, it could reach $1 by the end of the year. On the other hand, analyst Dark Green is bearish, predicting that MATIC’s upward movement has ended and that it will enter a long correction, potentially dropping out of the top 20 cryptocurrencies.
Using Elliott Wave Theory to identify long-term structures, we see significant signals in the MATIC chart. The most likely count suggests that MATIC price has completed a five-wave rise starting in September and is now in the C wave of an A-B-C corrective structure. The declining trend in RSI is concerning.
If MATIC Coin’s price continues to decline, the bottom of the C wave could target the support point at $0.68, achieving a 13% drop by creating a 1:1 ratio between the A and C waves. Conversely, if BTC manages to stay above $43,000, it could favor the bulls. In terms of recovery, reclaiming the highest level of the B wave at $0.95 could lead to a significant 50% recovery, potentially pushing the price to $1.15.