Polygon (MATIC) Enters Correction Phase, Pullback of 20% Expected!

Polygon (MATIC) Enters Correction Phase, Pullback of 20% Expected!
  • Investors should anticipate MATIC to retest the $1.45 and $1.41.
  • MATIC price may rise to $1.67 for ‘buy stop’ liquidity.

The Polygon (MATIC) price has been stabilizing for ten days, indicating a further drop to support. This decline is a consequence of the significant crypto’s short-term bearish view and a recent swing low violation.

The Automated Market Maker (AMM) on Polygon was proposed at the Uniswap governance conference. The popularity of Ethereum in the 2021 bull surge and new investors have raised gas fees. These ‘push and pull’ mechanisms have been around since.

Despite the London hard fork and the introduction of Proof-of-Stake, the cost has not fallen dramatically enough to enable regular investors to trade on the ETH blockchain without paying excessive gas costs.

Other platforms, including SushiSwap, Aave, Curve, Balancer, etc., have also debuted on the Polygon PoS. Since Uniswap hasn’t done so, this plan will. If successful, this will add to the MATIC token’s already favorable fundamentals. While the adoption of Polygon is long-term positive, the pricing of MATIC is now negative.

Correction Phase

On November 16, MATIC price hit the November 10 swing low of $1.51. This downtrend suggests that market makers expect the token to fall. Polygon has responded below the $1.67 support and is presently trading at $1.56.

MATIC/USDT: Source: TradingView

Investors should anticipate MATIC to retest the $1.45 and $1.41 support levels. However, market players should expect market makers to drive the Layer 2 token down to cover the Fair Value Gap (FVG).

Breaking these two obstacles could reduce the MATIC price to $1.30, a 22% reduction from $1.67. While a decline is inevitable, MATIC price may rise to $1.67 for ‘buy stop’ liquidity. This increase in purchasing pressure will invalidate the bearish thesis if Polygon makes a new high of over $1.77. According to CoinMarketCap, the Polygon price today is $1.56 USD with a 24-hour trading volume of $622,577,526 USD. Polygon is down 4.69% in the last 24 hours.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.