MATIC price plunges,at brink of adding another 10% loss to its feeble performance

Polygon price tanked over 6% to begin May.
MATIC flirts with another leg lower and says goodbye to $1.
Expect to see a steep decline that could bring MATIC below $0.90.

Polygon's (MATIC) price signaled a not-so-bright story with its opening price action on Monday in the ASIA PAC session. With the always-important 200-day Simple Moving Average (SMA) now being pulled into the bear camp as a cap, more downside looks granted. As MATIC has already plunged toward current support, more downside is more than likely as a few tail risks start to inflate again.

MATIC price cracks under pressure of tail risks

Polygon's price is setting the record straight for the month of May as it opens with a 6% decline on the first day of the month. The bad news does not stop there as clearly the risk in global markets weighs on MATIC with tail risks rising such as the possible default from U.S. on its debt ceiling and recession fears sparked again. The fact that Polygon price cracks that quickly under pressure means that more pain is to come, certainly should the US Dollar pick up steam and strengthen a bit.

MATIC is thus not in a good spot with the support at $0.96 already being broken on Monday. With possibly a large number of bulls stepping out of the way, it is just a matter of time before the sell-off accelerates and MATIC plunges toward $0.87. That means another 10% loss would be added to the already steep decline from Monday.

MATIC/USD 4H-chart

The fact that MATIC is still hanging on that pivotal level together with the Relative Strength Index (RSI) still near the oversold barrier might cause bears to lose interest in getting involved. The RSI, after all, shows little room for more downside. This opens up room for a bounce higher where the 200-day SMA at $1.025 will either be overthrown or deliver a firm rejection.

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