Polygon MATIC Falls 16% as Triangle Break Signals More Losses

Multi-Year Triangle Breakdown Signals Market Weakness

MATIC’s price has fallen sharply after breaking below a multi-year descending triangle pattern. This pattern, which has been forming since 2022, has consistently pressed the price lower with lower highs forming under a declining trendline. The breakdown below the $0.32 support confirms the market’s inability to maintain stability at higher levels, signaling potential further depreciation.

Analyst Ali (@ali_charts) notes that the current price drop, which sees MATIC trading at $0.25486—reflecting a 16.05% loss—aligns with a bearish continuation pattern. The measured move projection from this descending triangle suggests that MATIC could be headed toward $0.041, marking a significant downside potential of approximately 83% from current levels.

Lack of Immediate Support Opens the Door for Lower Prices

The loss of key support at $0.32 leaves MATIC with little structural support before deeper retracements. This breakdown suggests weak demand, as no strong buying pressure is emerging to counteract the ongoing decline. Analysts believe that if market sentiment does not improve soon, MATIC could continue its downward trajectory and approach the $0.041 target in the coming months.

Historically, assets breaking long-term structures like this have a tendency to follow the measured move, suggesting further downside potential for MATIC. The $0.041 level represents a historical price zone that acted as an accumulation area before MATIC’s previous price surge. If the asset continues its downward move, it could revisit these levels seen in 2020, before its significant rally.

Weak Demand and Seller Dominance

The ongoing price decline shows that sellers currently dominate the market, as evidenced by MATIC’s failure to maintain stability above $0.32. The absence of strong support levels further emphasizes the bearish trend, as there seems to be little demand for the asset at higher price points. Without any significant reversal or improvement in market sentiment, the probability of reaching the $0.041 target remains high.

Analyst Ali also points out that the current pattern in MATIC resembles past Bitcoin consolidations, where US dollar pairings provided a misleading outlook while alternative pairings showed clearer trend shifts. This suggests that MATIC’s USD pairing might continue facing weakness, unless macroeconomic conditions change or demand significantly increases.

Key Levels to Watch

For investors and traders, it’s crucial to monitor the following levels:

• $0.32 – The previous support level that MATIC broke below. If price fails to recover above this level, it signals further downside risk.
• $0.041 – The measured move target from the descending triangle pattern, indicating a potential 83% decline from current prices.
• Historical Price Zones – Levels near $0.041 where MATIC previously saw accumulation before its rise in 2020. A revisit to this zone could be likely if the bearish trend continues.

Conclusion: Sellers in Control and MATIC’s Downside Risk

The recent breakdown below the multi-year descending triangle confirms that MATIC is in a critical phase. With no immediate support to counteract the downward pressure, the cryptocurrency is at risk of continuing its decline, potentially reaching as low as $0.041. Sellers currently have full control of the market, and unless there is a significant shift in market sentiment, MATIC remains vulnerable to further depreciation.

For long-term traders, monitoring the $0.041 level will be essential. A bounce from this historical support could offer an opportunity for buyers, but until there’s a clear reversal in the trend, MATIC’s downside risk remains the prevailing market sentiment.