Polygon’s Strong Fundamentals and Quick Recovery
Polygon stands out as one of the most robust tokens in terms of fundamentals, showcasing a rapid rebound following a recent bearish pullback. Despite a dip below $1 in the face of the latest bearish attack, the token swiftly reclaimed higher levels. This surge has propelled the price above a pattern that was previously stuck in a decisive phase, signaling the initiation of a fresh bullish move.
Interestingly, the price is on the rise even as the volume has experienced a nearly 50% decline compared to the previous day. This raises the question: does this reduction in volume indicate a pause in bearish activity? If so, could we expect an intensification once the price regains the 2023 highs, nearing $1.5?
Technical Analysis and Price Trends
The MATIC price has been following a descending trend line since facing rejection from its long-term all-time high (ATH). During bearish pullbacks, the ascending support line has effectively supported the token, serving as a sturdy foundation for a powerful rebound. The recent rebound allowed the price to break through the upper resistance, suggesting the onset of a new bullish phase, reminiscent of the early days of the 2021 bull run.
On the weekly chart, MATIC’s price movement reflects a similar pattern to the 2021 bull run, breaking above a decisive triangle. Additionally, the Gaussian channel remains bearish, but both levels are converging significantly, hinting at a potential trend reversal. Furthermore, the Relative Strength Index (RSI) is approaching the upper threshold, potentially lifting the token above the prevailing bearish influence.
