The price of Polygon (MATIC) has plummeted in the current cryptocurrency sell-off. MATIC has fallen about 30% since Sunday and is currently trading at $0.44, its lowest level since June 22 of this year. Its market capitalization has also fallen by about a third this week, and it is currently the 19th cryptocurrency in the world.
Read more about the current crash of the price of Polygon’s native token MATIC, and read other important news from the crypto sectors, as well as the most important finance news in the world with our companion app Born2Invest.
Why is Polygon crashing?
The price of Polygon’s native token has fallen in recent days as investor fear continues to grow. According to CNN, the Fear & Greed Index has fallen to 23, having just left that extreme level a few days ago.
Market volatility has also increased, as the CBOE Volatility Index has risen by more than 10%. At the same time, U.S. indexes are down more than 1%. Overall, equity investors lost more than $9 trillion in the first half of the year.
Cryptocurrencies such as Bitcoin and Polygon have a close correlation with stocks. In most cases, they rise when leading indexes like the Dow Jones and Nasdaq 100 Indexes decline.
Moreover, Polygon falls after the short-lived bounce triggered by the launch of Polygon ID last week. At that time, the coin’s price jumped by almost 100%. Polygon ID is one of the few products that the network offers in its ecosystem.
It is a private and standalone identity solution based on zero-knowledge cryptography. It enables the expression of identity attributes that can be used to generate zkSNARK proof and interact privately with smart contracts, dApps, and other Web3 services.
The price of MATIC jumped after the introduction of Polygon ID. This is in line with the price movements of other coins after major events in their ecosystems.
MATIC Price Forecast
The last price forecast for Polygon was extremely accurate. At that time, the coin had formed an inverted head and shoulders pattern. By measuring the distance between the head and shoulder points, I could predict that the MATIC price would rise to $0.63, which it did.
Now, the 25 and 50-day moving average lines have formed a bearish crossover pattern, while the Relative Strength Index (RSI) has dropped below the oversold level. Moreover, the price has fallen below the important support at $0.4490, which was the neckline in the head and shoulders pattern.
Therefore, MATIC is likely to fall further as the bears target the important support at $0.39 – which corresponds to the right shoulder of the pattern.
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