Polygon (MATIC) in Freefall: Is a Rebound on the Horizon?

• As the year comes to a close MATIC has hit crucial levels after declining to lower lows, following its notable bullish performance.
• After sustaining a bullish trend for the most of the year, MATIC has lost momentum, although technical indicators are still promising.

Polygon (MATIC) has a decent run this year. However, towards the end of the year, Matic bulls lost momentum, causing the altcoin to decline significantly.

Polygon (MATIC) has been a notable performer in the altcoin market this year. Not only did Polygon strike significant partnerships with leading institutions, leading to increased adoption, but its native token MATIC was amongst some of the most talked about assets in the altcoin ecosystem.

As depicted in the technical charts, MATIC experienced a bullish run towards the early part of the year, and continued to maintain its pace throughout the 3rd quarter of the year.

In October, the first month of the third quarter of the year, MATIC recorded a massive price increase. The asset broke out of a descending resistance trend line. As a result, the asset saw its price value surge to a new price high. MATIC hit $0.98 on the 14th of November.

On the 11th of December, MATIC dropped to a long-standing horizontal support area. Before reaching this position, MATIC made some significant progress as it pushed past horizontal resistance levels.

MATIC to either soar or continue its current downtrend into the new year

However, MATIC’s nearterm performance could either emerge as bullish or bearish, depending on the movement recorded in the coming weeks.

According to the RSI momentum indicator utilized by cryptocurrency investors and traders, MATIC has a 50% chance of correcting and trading upwards, or maintaining a bearish position and going downwards. The asset could either record a spike before the year runs out or continue trading downwards into the new year.

According to our data, at report time altcoins are collectively trading in the red zone. While there are some exceptions, MATIC is currently not a part of the list. Over the last 24 hours, MATIC is down by 0.44%, and has lost gains of more than 7% this week. Over the last 30-days, MATIC is down by 5.35% and could continue to lose gains.

It is still worth noting that its year-to-date performance sits in the green zone, with gains going up above 12%. After trading at a 24-hour high of $0.86, MATIC is trading at a price of $0.85 at report time. Meanwhile, other altcoins trading in the green zone at press time include Ripple (XRP), Avalanche (AVAX), and the USD Coin (USDC).

The Polygon network has also remained committed to maintaining its position as a leading blockchain network, as it continues to collaborate with other promising blockchains and Web3 platforms.

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