A platform called Polygon offers a scalability option for the Ethereum network. It intends to turn Ethereum into a multichain system, making it a part of a blockchain internet.
In February 2021, Polygon replaced Matic Network as the company's name. It makes use of proof-of-stake consensus, just like the Ethereum network.
Since December 2021, the price of Polygon has fallen below a declining resistance line. Its cost at the moment had recently surpassed its all-time high of $2.92. With a low of $0.31 in June 2022, the decline came to a halt.
Since then, the cost of Polygon has been rising. The descending resistance line and the $0.80 horizontal region were both broken in July. The region is currently offering assistance (green icons). $1.70 is the nearest point of resistance.
Due to its close proximity to the 50 line, the weekly RSI is indeterminate.
As a result, whether the Polygon price breaks down from the $0.80 area has huge implications for the future price. The RSI would fall below 50 in the event of a breakdown, indicating that the price outlook is negative.
On the other hand, a rebound from the $0.80 region might serve as the impetus for a rise toward $1.70.
Double Bottom Pattern Created by Polygon Price
One of the top NFT marketplaces on Solana, Magic Eden, announced on November 22 that it would be adding Polygon as a third blockchain to its platform. Since then, MATIC has been rising despite a slight decline over the previous 24 hours.
A double bottom pattern was formed by the Polygon price, according to the six-hour technical analysis (green icons). Following Polygon's breakout from a short-term declining resistance line, the second bottom developed. The pattern's validity was significantly diminished, though, because bullish divergence in the RSI was not present.
If the pattern holds true, a climb toward the $1.10–$1.20 resistance region may occur. An A-B-C structure's C wave would then be complete.
Why the Trend Will be Determined by $0.80
Some ambiguous signals are present in the daily time frame, most notably the daily RSI movement above and below 50.
One divergence and recover, however, is a bullish indication. In September 2021, the Polygon price slipped below the $0.80 mark (red circle). Soon later, it took back control of the space. It has since adhered to an upward support line.
Therefore, a threshold for the trend's direction might be said to be in the $0.80 range. A closure below it would indicate a negative trend.