The reasons for the likely fall of cryptocurrencies from the top 10 by 30% are named

According to cryptocurrency analysts, the price of Polygon (MATIC) failed to overcome long-term horizontal resistance, and the token’s trend is bearish. Investors should get ready for MATIC to reach new lows, experts believe.

According to the results of technical analysis of the weekly chart, MATIC’s prospects are negative. The main reason for this is the price rebound from the horizontal resistance zone at $ 0.80. This area has provided support to the coin since July 2022, and in the past two weeks, it has turned into resistance.

At the time of writing, Polygon is trading at $ 0.72, down 2.4% on the day and 5.8% on the week. The digital asset has a market capitalization of $ 6.7 billion and daily trading volume of $ 207 million.

Like the weekly timeframe, MATIC’s daily chart shows bearish signals. Their main reason is the presence of an ascending parallel channel, which is considered a bearish pattern. Therefore, the most likely scenario for further developments is a further drop in the token by 30% to $ 0.60.

As a reminder, a group of Polygon blockchain founders and researchers proposed to update the network’s token. The developers propose to rename MATIC to POL. This will allow the token to function as a single asset for all Polygon-based networks.