Polygon (MATIC) may grow after new NFT partnership

Polygon (MATIC) crypto price regained the horizontal support area of ​​$0.80. That said, while there is a short-term bullish pattern, the long-term trend direction is unclear.

Polygon is a platform that provides a scalable solution for the Ethereum blockchain. Thus, this protocol aims to transform Ethereum into a multi-chain system, thus becoming what can be considered an internet of blockchains.

Formerly Matic Network, the project renamed itself Polygon in February 2021. Like the Ethereum network, it uses consensus stock proof.

of Polygon course it had fallen below the descending resistance line since December 2021. At that time, it had just hit an all-time high of $2.92. Its downward movement ended in June 2022 with a decrease of $0.31.

Since then, Polygon has been on the rise. In July, it broke above a resistance line on the downside, as well as above the horizontal area of ​​$0.80. This area now offers price support (green arrow). The nearest resistance zone is found at $1.70.

The weekly RSI, however, remains undecided, staying at the 50 line.

That said, a potential drop in Polygon below the $0.80 area could have a strong impact on future price action. Similarly, this decline would also cause the RSI to fall below 50, suggesting a bearish outlook for MATIC.

Conversely, a bounce at $0.80 could be the catalyst for a positive move towards $1.70.

MATIC/USDT – TradingView

The MATIC course formed a double bottom pattern

On November 22, Magic Eden, one of the leading NFT markets in Solana, announced that it will add Polygon as the third block available on its platform. The MATIC price has since shown an upward trend, despite a small drop in the last 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 arrow). The second bottom appeared after MATIC broke above a short-term bearish resistance line. However, this pattern was not accompanied by an upward divergence of the RSI, which diminishes its validity.

If this pattern is confirmed, however, it could lead to a rally towards the $1.10-1.20 resistance zone. This would complete the C wave of an ABC pattern.

Conversely, a drop below the second bottom set at $0.76 would negate this polygon price prediction.

MATIC/USDT – TradingView

$0.80, a crucial area for trend direction

Overnight data from November 24 provides some uncertain signals, including the RSI moving above and below 50.

However, a bullish sign is observed in the form of a deviation and a resumption of the course. The range also deviated below the $0.80 zone in September 2021 (red circle), before regaining the zone soon after. Since then, it has followed a rising support line.

Thus, one can consider the $0.80 zone as a threshold for the direction of the trend. Therefore, a close below this area would suggest that the trend is down.

MATIC/USDT – TradingView


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