- Polygon price has crashed by more than 30% from the week-to-date high.
- This decline follows last week's pump after the launch of Polygon ID.
The Polygon MATIC price has crashed hard as the sell-off in cryptocurrencies gained steam. The coin has crashed by about 20% in the past 24 hours and is currently trading at $0.4300, which was the lowest level since June 22 this year. It has crashed by over 31% from its highest point this week.
Why is Polygon crashing?
Polygon’s MATIC price has crashed hard in the past few days as the fear and greed index falls back to the extreme fear level. According to CNN, the index has fallen to 23 a few days after it exited this extreme level.
Market volatility has also increased as the CBOE volatility index has risen by more than 10%. At the same time, American indices have dropped by more than 1%. In total, stock investors have shed over $9 trillion in the first half of the year.
Cryptocurrencies like Bitcoin and Polygon have a close correlation to stocks. In most cases, they rise when leading indices like the Dow Jones and the Nasdaq 100 index retreats.
Polygon is also falling after the pump that happened last week following the launch of Polygon ID. At the 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 self-sovereign identify 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.
MATIC price jumped sharply after the launch. This is in line with how other coins trade after having a major launch.
MATIC price prediction
My previous Polygon price forecast was extremely accurate. In that report, I wrote that the coin had forms an inverted head and shoulders pattern. By measuring the distance between the head and shoulder, I predicted that the MATIC price would rise to $0.63, which is what happened.
Now, the coin’s 25-day and 50-day moving averages have made a bearish crossover pattern while the Relative Strength Index (RSI) has moved below the oversold level. It has also crashed below the important support at $0.4490, which was the neckline.
Therefore, MATIC will likely continue falling as bears target the key support at $0.39, which was the right shoulder.
