Would MATIC sustain its downtrend following the break of its short-term pattern??

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Introducing Matic – a brief overview of its features and capabilities

The price of has disrupted its short-term structure but continues to trade within a horizontal support range. MATIC serves as the native token of the Polygon network, which offers a layer 2 scaling solution focused on smart contracts. Technical analysis of MATIC over the daily time frame indicates a breakout above the gradually decreasing resistance line on March 29th, confirming the reclaiming of a minor support level at $1.Additionally, this invalidates the prior downtrend below this area (marked by the red circle)

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The price fluctuations of Matic

However, despite the initial breakthrough, the price could not sustain an upward trend and failed to reach the Fib retracement level of 0.5 at $1.Consequently, this suggests the possibility of another price decline. If the price drops below the support level of $1.08, it may trigger a significant decline to the next support level of $0.Nevertheless, MATIC’s price could reach the resistance level of $1.25 if a rebound occurs. The daily RSI index is currently below 50 and decreasing, making it more susceptible to potential issues.

A short-term incident may trigger a significant decline

Upon analyzing the two-hour technical chart, it appears highly probable that there will be a downside breakthrough below the $1.08 region. This is because the upward-sloping parallel channel has been breached. Channels typically contain corrective movements such as A-B-C structures, indicating that the trend is bearish and the prior gain is a correction. A decrease in movement equal to the previously marked decrease in height will bring MATIC down to $0.95, resulting in stronger support levels for the corresponding area.

The forecast for Polygon’s price suggests it will likely break below the horizontal support level of $1.08 and decline to $0.However, reclaiming the previous channel would invalidate this bearish hypothesis and may lead to a potential rise to $1.25.