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Here's Why Polygon (MATIC) Price Will Soar After Partnering With NFT Platform

Polygon (MATIC) price reclaimed the $0.80 horizontal support area. While there is a short-term bullish pattern, the direction of the long-term trend is unclear.

Polygon is a platform that provides scaling solutions for the Ethereum blockchain. It aims to transform Ethereum into a multi-chain system, so it can be considered the internet of blockchains.

Previously known February 2021, Matic Network changed its name to Polygon. Similar to the Ethereum network, it uses proof-of-stake consensus.

Since December 2021 Polygon prices have changed to down below the descending resistance line. At the time, it had just hit an all-time high of $2.92. The downtrend ends in June 2022 with a low of $0.31.

Polygon prices have been on the rise ever since. July broke above the descending resistance line and the $0.80 level area. This area is now supported (green icon). The nearest resistance is at $1.70.

Weekly RSI is undecided as it is right at the 50 line.

Therefore, whether or not the Polygon price breaks down from the $0.80 area can have a huge impact on future prices. A break would also cause the RSI to break below 50, indicating a bearish price forecast.

Conversely, from 0.80 A rebound in the USD zone could be the catalyst for an upward move towards $1.70.

Polygon price forms a double bottom pattern

On November 22nd, Magic Eden, one of the leading NFT marketplaces on Solana announced the will add Polygon as a third blockchain on its platform. MATIC has been on the rise despite a slight dip over the past 24 hours.

Six-hour technical analysis shows that Polygon price has created a double bottom pattern (green icon). The second bottom occurred after Polygon broke through the short-term downside resistance line. However, the pattern has not been combined with a bullish divergence on the RSI, which somewhat reduces its validity.

If the pattern is validated, it could lead to a move towards the $1.10-1.20 resistance area. This will complete the C wave of the ABC structure.

Conversely, a break below the second bottom at $0.76 would invalidate this polygonal price prediction.

Why $0.80 Will Determine Trend Direction

The daily time frame is giving some ambiguous signs, more notably the daily RSI movement above and below 50.

However, there is a bias and recovery in the form of a bullish sign. Polygon price is below the $0.80 area (red circle) for September 2021. It reclaimed the area shortly after. Since then, it has been following the ascending support line.

Therefore, the $0.80 area can be considered as a threshold for the direction of the trend. A close below this level indicates a bearish trend.

For BeInCrypto’s latest crypto market analysis, Click here.

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