- 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.
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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.
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.
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