Polygon Hovers At Key Level, Could Trigger Explosive MATIC Price Rally

Since the beginning of 2023, the price of Polygon (MATIC), the leading scaling solution for Ethereum (ETH), has increased by more than 28%. Recently, the Polygon network went through a crucial hard fork, an improvement the community had been looking forward to. The hard fork was implemented in a bid to mitigate the rising gas prices and address chain reorganizations (reorgs) to reduce time to finality.

Polygon (MATIC) Price Activity

As a result of this recent technical advancement, the flagship cryptocurrency witnessed a significant surge in value. During the course of the last few days, there has been a notable rise in MATICS’s price above the $1.25 zone. However, with the release of the U.S. PCE data by the Bureau of Economic Analysis–which emphasized about rising inflation–caused MATIC’s price to drop on Friday along with other significant assets like Bitcoin (BTC), Ethereum (ETH) and the crypto market as a whole.

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The price of MATIC is currently trading over a crucial threshold, and a move in either direction can be anticipated depending on its bounce from the region. If a favorable bounce takes place, noted crypto analyst Michael van de Poppe predicts that MATIC will easily gain 20-25%, which equates to a price target of $1.56.

MATIC’s Bearish Outlook

But, the bullish thesis for the altcoin can be rendered worthless if the price falls below the indicated level, and according to Poppe, MATIC might try to retest the $1 mark again. Polygon is currently down by 57.47% from its all-time-high price of $2.92 last seen in 2021 and bears a market capitalization of roughly $11 billion at the time of writing.

Nevertheless, as things stand, the price of Polygon (MATIC) is currently trading at $1.24 which represents a decrease of 3.40% over the past 24 hours, in contrast to a drop of 17.13% over the last seven days.

Additionally, it should be noted that MATIC’s technical analysis (TA) indicators at CoinGape’s price tracker recommend a sell position as summarised by the moving averages, suggesting a “sell” at 10 and “buy” at level 6.

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