Polygon (MATIC) Plunges in BTC-Led Flush: Can It Hold Support?

Polygon (MATIC) inches close to 2024 low after 7% drop.

Robot on a cloud seeing Polygon Matic hover above it.
Created by Kornelija Poderskytė from DailyCoin
  • Polygon (MATIC) has dived to near-yearly lows.
  • MATIC’s price action follows a broader market dip led by Bitcoin.
  • A critical U.S. macroeconomic data release expected today could be essential to MATIC’s short-term fate.

Polygon (MATIC) sees red.

After a parabolic run in Q1 2024, crypto assets, including Polygon’s native token MATIC, are now experiencing a rout. A recent Bitcoin-led market flush has sent MATIC near yearly lows amid this decline.

Polygon (MATIC) Dives Below $0.65

Over the past 24 hours, MATIC has tanked about 7%, from around $0.6759 to lows of around $0.6322, near 2024 lows of $0.5885.


MATIC’s price rout is part of a broader market dump that has seen Bitcoin’s price drop by about $2,500 in the two hours from about $60,000 to just below $57,500. The jitters come as the market awaits the Federal Reserve’s interest rate decision slated for 6:00 pm UTC, Wednesday, May 1. 

With the Fed expected to keep rates unchanged at 5.5%, investors are reducing their exposure to risk assets like crypto.  

Can MATIC Hold the Line?

MATIC boasts support within the $0.6467 and $0.6314 price range. At the time of writing, the asset is already showing resilience, bouncing from $0.6322 to trade at $0.6653. Bulls would want this momentum to continue, as a break below the current support could see the asset tank as low as $0.5.

MATIC/USDT 4-hour candle chart.
MATIC/USDT 4-hour candle chart. Source: TradingView

The Fed’s rate hike decision is critical to MATIC’s continued run in the short term. While leaving rates unchanged or raising rates could lead to mild or significant price corrections, a shock decision to engage in rate cuts could fuel a parabolic run to the upside. 

On the Flipside 

  • MATIC is not the only asset that experienced a price drop in the Bitcoin-led correction. Leading assets like Ethereum, BNB, and Solana are also experiencing price corrections of about 3.2%, 2.8%, and 4%, respectively, per CoinGecko data at the time of writing.

Why This Matters 

The price action of the past 24 hours puts MATIC in a precautionary position. If it fails to hold support, the asset risks a 30% drop to $0.5.

Read this for more on MATIC:
Polygon (MATIC)-Linked Avail Integrated by Leading L2s for DA

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.