MATIC Coin managed to maintain relative strength during the tumultuous crypto market of 2022 and into the first quarter of 2023. However, it later experienced weakened influence from advertising and marketing, and the excitement around its ZK-rollup narrative diminished as competitors moved faster. The question now is what lies ahead for MATIC.
The popular cryptocurrency has been weakened by the increasing number of competitors in its field. With a proliferation of alternative layer1 and layer2 solutions, we had previously mentioned the potential for ecosystem growth to lag and lead to losses for MATIC.
Since reaching its all-time high of $2.90 in December 2021, MATIC’s price has been under the pressure of a declining resistance line, unable to break through despite several attempts, including those in November and December 2023. The general market sentiment’s massive surge failed to provide the expected support.
The price performance of MATIC in 2024 will hinge on its response to the declining resistance line that has been static for 750 days. Overcoming this line, possibly due to a relaxation in Bitcoin dominance (BTCD), is crucial for setting new targets. The RSI looks promising for a new attempt.
With two different scenarios ahead for MATIC Coin, investors should pay attention to key areas. A completed A-B-C corrective structure suggests a potential 40% rise to $1.18, while a second scenario indicates a possible retreat to $0.65 support, a 22% drop. Sandeep Nailwal mentioned the launch of Matic 2.0 and POL token this year, which could positively influence investor sentiment, with POL Coin being a multichain token with a restaking mechanism that may boost demand.