MATIC, Polygon’s native token, recently saw a significant price drop amid a broader market decline. The token is down over 20% in the past month, hitting a two-year low. With the market recovering, some analysts have made bullish arguments for the token, but are warning of a key level to watch.

MATIC hits two-year low

Over the past few months, MATIC has seen a steady decline from its yearly high of $1.27. Since July, the token’s price has retreated by 20.5%, falling from the $0.55 support zone to the $0.40 level.

During the August 5 market crash, when most cryptocurrencies fell by 20%, MATIC fell to a two-year low of $0.35. That level, last seen in June 2022, represented a 30% drop from its price at the beginning of the month.

MATIC’s market cap also fell 30.2% during the crash, from $4.6 billion to $3.5 billion. The token has since lost its place among the top 20 cryptocurrencies by that metric. Polygon’s native token is currently the 28th largest cryptocurrency, with a market cap of $3.8 billion.

The token has reclaimed the $0.40 resistance level, oscillating between the $0.40-$0.43 price range. Despite a 22% recovery from the crash, the token is still trading in a range not seen since June 2022.

However, some market observers to consider that this level may be the best time to accumulate MATIC at a low price. On Wednesday morning, the analyst emphasized that the token is “at its weekly support, and the RSI has also reached its lowest level.”

All eyes on the Key support zone

After seeing a correction on Monday this week, a cryptoanalyst who goes by the name Cryptorphic he pointed out that MATIC reached the lower support zone, set between $0.31-$0.38, “as expected.” The analyst emphasized that the token needs to maintain this level because if “it fails and breaks down, things could go badly.”

For Cryptorphic, if the token holds above the key support zone, it could try to reclaim the next key resistance level at $0.98. The analyst has also set a retest of the token’s all-time high (ATH) of $2.92 as a long-term target.

Similarly, another market observer noted that Polygon’s native token “bounced perfectly off the lower boundary of a falling wedge pattern.” suggested that traders could expect a rally towards the $0.75 resistance level if the token breaks through the $0.465 level.

Meanwhile, renowned cryptocurrency analyst Ali Martinez has made a bold prediction for MATIC. According to Martinez, the token will “melt faces” if the altcoin season begins.

According to the chart, MATIC is displaying a multi-year descending triangle pattern. A breakout from the upper line of the pattern, set at $0.89, could trigger a massive rally to all-time highs similar to 2021.

The analyst suggested a 15,169% rally toward $50 if history repeats itself. However, he warned investors not to “go crazy yet” as “a weekly close below $0.30 would invalidate the bullish thesis.” At the time of writing, MATIC is trading at $0.41, down 1.1% in the past 24 hours.

Featured image from Unsplash.com, chart from TradingView.com