The red days are endless for MATIC: How far will the decline continue?

The price of Polygon (MATIC), one of the popular altcoins in the cryptocurrency market, lost its short-term correction pattern as it failed to break a critical resistance point.
This is a decisive sign that the current trend is bearish. However, a breakout from the pattern will confirm that the trend is bearish. The downward movement that will begin may continue until the lowest level of the year is reached.
MATIC price drops sharply
The weekly chart points to a pessimistic view as the resistance at $0.80 is rejected. This zone has been acting as support since July 2022 but has become a strong resistance for the price in the last two weeks.
The rejection is evident from the formation of a long red candle, which indicates increased selling pressure. This shows that despite the efforts of the buyers to push the price higher, the sellers took control and caused MATIC to fall below the resistance zone.
The drop came at the same time that the digital banking giant delisted its MATIC token.
Also, the weekly Relative Strength Index (RSI) points to a bearish trend. Because the value is below the 50 mark, which is one of the bearish signs.
MATIC price prediction:
Analysis on the daily chart for MATIC also shows a bearish bias. The main reason for this is the breaking of an ascending parallel channel that has been in effect since June 10. The channel is considered a corrective pattern. Therefore, the breakdown from it shows that the upside correction is complete and the downtrend will continue.
Also, the daily RSI is also bearish, similar to the weekly one. The indicator drops below 50 at the same time as the price, legitimizing the dump and proving that the trend is bearish.
The MATIC price has dropped 7% since the malfunction. If the decline continues, the next closest support will be at $0.60. This means a 12% decrease.
Despite this bearish price prediction, if the price regains its balance, it could move up to the support line of the channel. Its initial target on the upside is located at $0.80. But for now, there are no signs that it will be able to achieve this goal.
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