MATIC/USDT

The weekly Relative Strength Index (RSI) is also bearish. By using the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.

If the RSI reading is above 50 and the trend is upward, bulls have an advantage, but if the reading is below 50, the opposite is true.

The RSI fell below 50 in April (red icon), at the same time the price broke down. This legitimized the decrease, further suggesting that the long-term trend is bearish.

MATIC Price Prediction: Breakdown Can Accelerate Decrease

The technical analysis from the short-term six-hour time frame gives a bearish MATIC price prediction. It suggests that the long-term decrease will continue without a bounce. The first reason for this comes from the wave count..
The Elliott Wave theory, employed by technical analysts, involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend.

The count suggests that MATIC is currently in wave four of this five-wave decrease. Therefore, another drop will complete this portion of the correction.

The second reason comes from the presence of an ascending parallel channel. As outlined in the weekly time frame, such channels usually lead to breakdowns.

Moreover, the price trades in the lower portion of the channel, supporting the possibility of a breakdown.

If one occurs, the most likely target for the bottom will be near $0.77. The target is found by wave one (white) length and the 1.61 external Fib retracement of wave four (black). This will also align with the long-term $0.75 horizontal support area.