Polygon's (CRYPTO:MATIC) token, MATIC, has experienced a 10% decline over the past week, approaching a crucial support level at $0.63.

Trading within a horizontal channel since April, MATIC's recent trend toward the lower boundary signals increased bearish sentiment.

On-chain metrics, including a negative weighted sentiment and declining futures open interest, further confirm this downward pressure.

While key momentum indicators suggest oversold conditions, indicating potential buying opportunities, MATIC's fate hinges on whether bulls can defend the $0.64 support level.

If breached, the token may plummet to $0.61, but a positive sentiment shift could propel it toward $0.67 and beyond.