- Polygon (MATIC) fell to a near yearly low.
- MATIC’s price action follows a broader market decline led by Bitcoin.
- The release of important US macroeconomic data expected today could be vital to MATIC’s near-term fate.
Polygons (MATIC) are colored red.
After a parabolic run in the first quarter of 2024, crypto assets, including Polygon’s native token MATIC, are now experiencing a rout. The recent Bitcoin-led market crash pushed MATIC to near yearly lows amid this decline.
Polygon (MATIC) Dive Under $0.65
In the last 24 hours, MATIC has fallen about 7% from around $0.6759 to a low of around $0.6322, which is close to its 2024 low of $0.5885.
MATIC’s price plunge is part of a broader market selloff that saw the price of Bitcoin fall by about $2,500 in two hours, from around $60,000 to just below $57,500. Nervousness has grown as markets await the Federal Reserve’s interest rate decision scheduled for 6:00 PM UTC on Wednesday, May 1.
With the Federal Reserve expected to keep interest rates unchanged at 5.5%, investors are reducing their exposure to risky assets such as cryptocurrencies.
Can MATIC hold the line?
MATIC boasts support within the $0.6467 and $0.6314 price range. As of this writing, the asset has already shown resilience and is trading between $0.6322 and $0.6653. Bulls will want this momentum to continue as a break below the current support could tank the asset as low as $0.50.
The Federal Reserve’s decision to raise interest rates is critical to MATIC’s continued operations in the near term. Keeping interest rates flat or raising them could lead to minor or significant price adjustments, but a shock decision to cut interest rates could spur a parabolic rise.
On the flip side
- MATIC is not the only asset to experience price declines due to the Bitcoin-led correction. Major assets such as Ethereum, BNB, and Solana are also experiencing price corrections of 3.2%, 2.8%, and 4% respectively. CoinGecko data At the time of writing.
Why This Matters
Price action over the last 24 hours has placed MATIC in a precautionary position. If support fails to hold, the asset risks a 30% decline to $0.5.
To learn more about MATIC, read:
Avail integrated Polygon (MATIC) connection on key L2 for DA
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