Polygon (MATIC) price has retested the $0.80 horizontal support area. While there is a short term bullish pattern, the direction of the longer term trend is unclear.
Polygon is a platform that provides scaling solutions for the Ethereum blockchain. It aims to turn Ethereum into a multichain system, thus can be considered the Internet of Blockchains.
In February 2021, what was previously known as Matic Networks was renamed Polygon. Similar to the Ethereum network, it uses proof-of-stake consensus.
is the polygon value fell short of Beneath a descending resistance line from December 2021. At that time, it had reached an all-time high price of $2.92. The decline ended with a June 2022 low of $0.31.
Polygon’s price has been rising ever since. In July, it broke above the descending resistance line and the $0.80 horizontal zone. The area is now providing support (green icon). The nearest resistance area is at $1.70.
The weekly RSI is inconclusive as it is right on the 50 line.
Therefore, whether the price of Polygon breaks the $0.80 area could have massive implications for the future price. A breakdown could also result in the RSI falling below 50, suggesting that the price forecast is bearish.
Conversely, a bounce from the $0.80 area could be a catalyst for a move towards $1.70.
polygon value creates double bottom pattern
On November 22, one of the major NFT markets at Magic Eden, Solana announced It will add Polygon as the third blockchain on its platform. MATIC is in an uptrend despite a slight decline in the last 24 hours.
Technical analysis on the six-hours shows that price from Polygon has formed a double bottom pattern (green icon). The second bottom occurred after the polygon broke from the short-term descending resistance line. However, the pattern was not associated with a bullish divergence in the RSI, reducing its validity somewhat.
If the pattern is valid, it could move towards the $1.10-$1.20 resistance area. This will complete the C wave of the ABC pattern.
Conversely, a further drop below the $0.76 bottom would invalidate this Polygon price prediction.
Why $0.80 will determine the direction of the trend
The daily time frame is showing some bullish signals, especially the daily RSI movement above and below 50.
However, there is a bullish signal in the form of divergence and reclamation. Polygon price moved below the $0.80 area in September 2021 (red circle). It recaptured the area shortly afterwards. Since then, it has followed an ascending support line.
Therefore, the $0.80 area can be considered as a range for the direction of the trend. A close below this would suggest that the trend is bearish.
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