MATIC, the native token of the Polygon network, is trading at $0.38 as of Tuesday, and a cluster of technical indicators is pointing toward further losses. The Relative Strength Index (RSI) is sliding toward oversold territory, while the Moving Average Convergence Divergence (MACD) has flatlined — a setup that often precedes a sharper move lower.
RSI and MACD flash caution
The RSI, a gauge of price momentum, has been drifting downward over the past several sessions. When the RSI approaches or enters oversold territory — typically below 30 — it can suggest that selling pressure is exhausting. But the indicator hasn't bounced yet, and the MACD's flat line means trend direction remains uncertain. Traders watching these signals are bracing for a continuation of the decline rather than a quick reversal.
Bollinger band target in sight
Based on current chart patterns, the token has a 65% probability of testing the lower Bollinger band at $0.31 within the next two weeks, according to technical analysis. Bollinger bands measure volatility and are often used to identify potential support and resistance levels. A move to the lower band would represent a drop of roughly 18% from the current $0.38 level.
The $0.31 area hasn't been tested since late 2023, and a break below it could open the door to further downside. Whether MATIC finds buyers at that level — or slices through it — remains the open question for traders.
