Polygon MATIC price crashed as cryptocurrency selling gained momentum. The coin has crashed around 20% in the past 24 hours and is currently trading at $0.4300, the lowest level since June 22 of this year. It has crashed over 31% from its peak this week.
Why is Polygon crashing?
Polygon’s MATIC price has crashed in recent days as the fear and greed index falls back to the extreme fear level. According to CNN, the index fell to 23 a few days after breaking out of this extreme level.
Market volatility also increased, with the CBOE Volatility Index rising more than 10%. At the same time, US indices fell more than 1%. In total, equity investors lost more than $9 trillion in the first half.
Cryptocurrencies like Bitcoin and Polygon have a close correlation with stocks. In most cases, they rise when major indexes like the Dow Jones and the Nasdaq 100 index fall.
Polygon is also down after the pump that happened last week after the launch of Polygon ID. At the time, the coin’s price jumped almost 100%. Polygon ID is one of the few products the network offers in its ecosystem.
It is a private and sovereign identification solution that is powered by zero-knowledge cryptography. It allows the expression of identity attributes that can be used to generate zkSNARK Proof to privately interact with smart contracts, dApps and other Web3 services.
The MATIC price jumped sharply after the launch. This matches how other coins trade after a major launch.
MATIC Price Prediction
My Previous Polygon Price Predictions was extremely precise. In this report, I wrote that the piece had inverted head and shoulder shapes. By measuring the distance between the head and the shoulder, I predicted that the MATIC price would rise to $0.63, which happened.
Now, the coin’s 25- and 50-day moving averages have made a bearish crossover while the Relative Strength Index (RSI) has broken below the oversold level. It also crashed below the important support at $0.4490, which was the neckline.
Therefore, MATIC will likely continue to decline as the bears target the key support at $0.39, which was the right shoulder.