Polygon (MATIC) crypto price regained the $0.80 horizontal support zone. That said, while a short-term bullish pattern is present, the direction of the long-term trend is unclear.
Polygon is a platform that provides a scaling solution for the Ethereum blockchain. So, this protocol aims to transform Ethereum into a multi-chain system, making it what can be considered an internet of blockchains.
Formerly as Matic Network, the project renamed itself Polygon in February 2021. Like the Ethereum network, it uses proof-of-stake consensus.
The Polygon price had fallen below a descending resistance line since December 2021. At the time, it had just hit an all-time high of $2.92. The downward move ended in June 2022 with a low of $0.31.
Since then, Polygon has been on the rise. In July, it broke above a descending resistance line and above the $0.80 horizontal area. This area now offers price support (green arrows). The closest resistance zone can be found at $1.70.
However, the weekly RSI remains undecided and is at the 50 line.
That being said, a possible Polygon decline below the $0.80 zone could have a strong impact on future price action. Likewise, this drop would also cause the RSI to dip below 50, suggesting a bearish forecast for MATIC.
On the contrary, a bounce at the $0.80 level could be the catalyst for an upward move towards $1.70.
The MATIC track formed a double bottom pattern
On November 22, Magic Eden, one of the main NFT marketplaces on Solana, announced that it would add Polygon as the third blockchain available on its platform. The MATIC price has been on an upward trend ever since, despite a small decline in the past 24 hours at the time of writing.
Data from the six-hour technical analysis shows that the price has formed a double bottom pattern (green arrows). The second bottom appeared after MATIC broke above a short-lived descending resistance line. However, this pattern was not accompanied by a bullish divergence from the RSI, somewhat reducing its validity.
However, if this pattern is validated, it could lead to a rise towards the $1.10-1.20 resistance zone. This would complete wave C of an ABC structure.
On the contrary, a drop below the second bottom at $0.76 would negate this Polygon price prediction.
$0.80, a crucial area for trend direction
The November 24 overnight data gives some uncertain signals, including the movement of the RSI above and below 50.
However, a bullish sign is observed in the form of a deviation and a resumption of the course. Polygon also deviated below the $0.80 zone in September 2021 (red circle), before regaining the zone shortly thereafter. It has been on a rising support line ever since.
Thus, one could consider the $0.80 zone as a threshold for the direction of the trend. A close below this zone would therefore suggest that the trend is bearish.
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