Polygon (MATIC) Continues To Plunge; Why Are The Bears Still Dominant?

Polygon (MATIC) is below the $1 mark today as the bears continue to pressure its price. From April 19, 2023, it moved into a downtrend gradually to its current price level of $0.966 today.
The recent price volatility and decline experienced by Bitcoin and Ethereum seem to have a ripple effect on other tokens in the market. However, MATIC remains above its January 1 price of $0.76 despite the decline, holding onto most of its gains.
Nevertheless, a sweep of previous lows remains possible if the bears maintain their charge. Investors and the general crypto market hope the current decline is a minor correction, not a downtrend similar to the crypto winter of 2022. 
Will MATIC Pivot Off The $0.9321 Critical Support Level?
Some major cryptocurrencies are in a downtrend, excluding a few altcoins with minor gains. The impending US rate hikes and other factors, such as rising bitcoin mining difficulty, could affect the market negatively.
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Polygon ranks number 9 on the list of cryptocurrencies and is a platform for Ethereum scaling. Also, with the recent upgrades, users can create Optimistic Rollup chains and ZK Rollup chains as required by the developer. Its multi-functionality is one of the reasons its community is optimistic about a rally in the coming weeks. 
MATIC is in a downtrend forming a third consecutive red candle on the daily chart with lower lows. It has dropped below its 50-day and 200-day Simple Moving Averages (SMA), a bearish trend in the short and long term. MATIC moved into the downtrend on April 19, forming a long red candle that closed below the 50-day SMA.
Also, the Relative Strength Index (RSI) is 31.91, descending into the oversold region of 30. It implies that the bears are in control of the asset’s price. However, MATIC is approaching the $0.9321 support level, which previously acted as a pivot point on January 1, 2023. MATIC’s RSI will move to the oversold region when its touches this level forcing the bulls to rally again.
Expect a price increase once the asset enters the overbought zone. The next support level is $0.7472; the resistance levels are $1.026 and $1.1914. Also, the $1 price level has become a psychological resistance point.

MATIC has formed an ascending triangle pattern on the monthly chart; the next breakout from this pattern will be vital to its price action. It traded at the upside in February and March 2023 before retracing in April.
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A return to the upside of the triangle is possible if the bulls rally. Also, the Monthly RSI value is 53.60 in the neutral zone but moving downward, reflecting the bearish trend in April.
Featured image from Pixabay and chart from Tradingview