Will Polygon Price Crash $0.19 After Co Founder Exit: What Next?

Polygon (MATIC) Faces Market Turbulence Following Co-Founder Mihailo Bjelic's Departure

Polygon (MATIC), a prominent Ethereum Layer 2 scaling solution, has recently experienced a notable decline in its token value. The downturn coincides with the unexpected resignation of co-founder Mihailo Bjelic from the Polygon Foundation, announced on May 23, 2025. This leadership change has introduced uncertainty among investors, leading to a significant drop in MATIC's price and trading volume.

Leadership Transition Sparks Investor Concerns

Mihailo Bjelic's departure from the Polygon Foundation marks a significant shift in the project's leadership. In his announcement, Bjelic stated, "As projects evolve and mature, it is natural for visions to evolve, and sometimes diverge." While the reasons for his resignation remain personal, the market's reaction underscores the importance of leadership stability in the volatile cryptocurrency sector.

Market Reaction: Price and Volume Decline

Following the announcement, MATIC's price fell by over 3.5% within 24 hours, trading at approximately $0.2369. The market capitalization decreased to around $2.47 billion, accompanied by a significant 32.38% drop in daily trading volume, indicating reduced investor interest and heightened caution.

Source: CoinMarketCap

Technical Analysis Indicates Bearish Trends

Technical indicators suggest a bearish outlook for MATIC in the short term:

• Relative Strength Index (RSI): The RSI stands at 25.2, indicating that MATIC is in oversold territory, which could precede a potential price rebound. 

• Moving Averages: The 50-day moving average is below the 200-day moving average, a pattern known as a "death cross," often signaling a bearish trend. 

• Support and Resistance Levels: MATIC is approaching a key support level at $0.215. A breach below this could lead to further declines, potentially reaching $0.195. Conversely, a recovery could see resistance at $0.265.

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Source: TradingView

Polygon's Ongoing Development and Future Prospects

Despite the leadership change, Polygon continues to advance its technological initiatives. The AggLayer Breakout Program aims to enhance the network's scalability and interoperability, potentially attracting new projects and users.

Looking ahead, various forecasts predict a positive trajectory for MATIC:

• Price Predictions: Analysts anticipate MATIC's price could range between $1.34 and $1.57 in 2025, driven by increased adoption and technological advancements. 

• Long-Term Outlook: By 2030, projections suggest MATIC could reach up to $10.51, reflecting confidence in Polygon's long-term viability. 

Conclusion: Navigating Uncertainty

Mihailo Bjelic's resignation has introduced short-term volatility for Polygon (MATIC), highlighting the sensitivity of cryptocurrency markets to leadership dynamics. However, the project's ongoing development efforts and positive long-term forecasts suggest potential resilience. Investors should monitor technical indicators and project updates to make informed decisions in this evolving landscape.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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