Following a direction rally from June to August, the Polygon Coin price reverted from the $1-$1.02 barrier. Since then, the altcoin has been in a downward spiral forming new lower highs and lower lows. Connecting this swing, the daily technical chart showcased the formation of a flag pattern.
A flag pattern is a bullish continuation pattern that offers a long entry opportunity for a minor correction. Under the patterns influence, the Polycoin coin price retracement 50% of the previous rally and plunged to a low of $0.69.
On September 22nd, the polygon coin price rebounded from the support trendline and triggered a new bull cycle within this falling wedge. The altcoin shows 10.5% growth within a fortnight and has repeatedly retested the $0.75 resistance.
The higher price rejection candle at his resistance indicates the sellers vigorously defend this level. However, if the buyers managed to breach this resistance, the coin price would rise 6 to 8% to hit the downsloping trendline.
Until the altcoin is below this trendline, the Polygon coin price will remain trapped in a correction phase and could witness more losses.
However, per the technical setup, the bullish pattern should eventually encourage buyers to break the resistance trendline. Doing so will replenish the bullish momentum and drive the prices to $0.875, followed by $1.
Technical Indicators
Bollinger band indicator: the coin price trading below the neutral line indicates the sellers are currently controlling the price. Moreover, this midline at $0.75 is an added barrier against buyers.
MACD indicator: a bullish crossover between the fast and slow line gives an additional confirmation for a $0.75 breakout.
Polygon Coin Price Intraday Levels
Spot rate: $0.78
Trend: Bullish
Volatility: Medium
Resistance levels- $0.75 and $0.875
Support levels- $0.726 and $0.7
Source : coingape
