Polygon MATIC Price Eyes $0.32 After Failed Breakout Attempt

The bullish divergence on the Polygon MATIC price chart was playing out perfectly, but the price faced another rejection due to a correction in Bitcoin. Consequently, MATIC coin has lost most of its Uptober gains as the crypto investors de-risk their altcoin portfolios.

On Wednesday, Bitcoin price plummeted below $27,000, making fresh weekly lows. This resulted in a negative price action in most altcoins. However, MATIC showed some resilience as the coin was up 0.06%. The minor gain signifies strength on a day when major altcoins are trading in red.

MATIC/USD Makes Fresh 52-Week Lows

The recent weakness in the MATIC to USD chart can be explained by the downtrend in the MATIC/BTC pair. The following chart shows that the altcoin pair of the smart contract coin has hit its lowest level since June 2022. This shows that investors are selling their MATIC holdings for BTC in the spot markets on different exchanges.

The pair is trading just a few points above its 2022 lows, which was also the lowest level in the last 3 years. This suggests that the time is running out for the bulls, as a breakdown below $0.000017 will be extremely bearish.

Polygon Proposes L2 For ApeCoin

Polygon co-founder Sandeep Nailwal holds an eminent position in the whole blockchain space. Recently, Sandeep posted an ApeCoin proposal (AIP) for the development of a zk-knowledge-based L2 solution for the growth of ApeCoin.

ApeCoin is a major cryptocurrency that has utility in the Bored Ape Yacht Club ecosystem. According to the details of the submitted proposal, the new ApeChain will be developed using the Polygon CDK. In another significant development for the Polygon ecosystem, Google Cloud recently became a validator for the Polygon blockchain. However, despite the bullish developments, the Polygon MATIC price remains in a downtrend.

Polygon TVL Decreases In 2023

DeFi Llama tracks the total locked value (TVL) across all blockchains. According to the most recent stats, the TVL on the Polygon blockchain has fallen 18% since the start of 2023. However, during this time, Polygon price has tanked 32.75%.

If we consider MATIC's devaluation in the past few months, then the total locked value in terms of other coins has increased on the Layer 2 network.

Polygon MATIC Price Prediction

Analyzing MATIC/USD chart on a daily timeframe reveals a formation of a falling wedge pattern. A breakout from this pattern is considered to be very bullish by the most technical analysts. However, after a failed breakout attempt earlier this month, Polygon MATIC price prediction is looking very bearish.

If the price drops below the $0.50 level, I expect a strong downward push towards the $0.32 level. A major capitulation even in the market may acta as a catalyst for such a move. However, such a move can be evaded if the price breaks out from the falling wedge.