Polygon MATIC Drops 16% as Multi-Year Triangle Break Signals More Losses

• MATIC has broken key support at $0.32 and is now falling fast.
• Analysts see weak demand with price possibly heading to $0.041.
• Sellers have full control as MATIC loses key multi-year structure.

Polygon’s MATIC price has broken below a multi-year descending triangle, signaling a critical phase for the asset. Analyst Ali (@ali_charts) notes that the structure suggests further downside pressure, with MATIC currently trading at $0.25486, reflecting a 16.05% drop. The breakdown confirms a key support loss, increasing the likelihood of a downward extension toward the $0.041 level, as indicated by the measured move projection from the pattern. 

Multi-Year Triangle Breakdown Signals Market Weakness

The descending triangle pattern, visible since 2022, has consistently pressed price lower with lower highs forming under a declining trendline. This structure typically signals a bearish continuation, and the recent break below $0.32 support confirms the market’s inability to maintain stability at higher levels. With no immediate recovery, sellers appear dominant, increasing the probability of further depreciation toward historical price zones.

The current breakdown aligns with historical market behavior, where assets breaking a long-term structure tend to follow the measured move. The chart suggests a price objective near $0.041, representing a potential drawdown of approximately 83% from current levels. If selling momentum persists, the next few months could see MATIC revisiting 2020 price levels, which previously acted as accumulation zones before its meteoric rise.

Lack of Immediate Support Opens the Door for Lower Prices

The loss of $0.32 support, which previously held firm during multiple tests, leaves MATIC with little structural support before deeper retracements. The breakdown suggests weak demand, with no strong buying pressure appearing to counteract the decline. If market sentiment does not improve, the probability of reaching the $0.041 target remains high, making it a critical level for long-term traders to watch.

Analyst Ali highlights that this pattern resembles past Bitcoin consolidations, where US dollar pairings provided a misleading outlook while alternative pairings showed clearer trend shifts. This suggests that Polygon’s USD pairing may continue facing weakness unless macro conditions shift or demand increases significantly. Without a sharp reversal, MATIC remains vulnerable, with sellers maintaining full control of the trend.