Polygon's price continues to decline, reaching a yearly low, but several factors may indicate potential recovery.
Price Decline of Polygon
As of July 4, Polygon's price has dropped to $0.1800, a decline of over 76% from its peak this year. This drop has led to a loss of more than $4 billion in market capitalization, falling from nearly $6 billion to $1.88 billion.
Increase in NFT Sales on Polygon
Despite the overall decline, Polygon has seen an increase in the NFT sales sector. CryptoSlam data shows that NFT sales on the network surged by 52% in the last week to $24 million, while Ethereum's NFT sales fell by 5.7% to $23 million. The main driver of NFT sales volume on Polygon was the Courtyard project, which recorded over $18 million in sales.
Technical Analysis of Polygon Price
Daily charts indicate that Polygon's price is gradually forming a double-bottom pattern at $0.1500, with a neckline at $0.2755. This neckline is slightly below the 23.6% Fibonacci retracement level. The price has also formed a falling wedge pattern, popular for indicating a potential bullish reversal. If a breakout occurs, the initial target is the neckline at $0.2755, representing a potential 53% gain from the current level. However, a drop below the double-bottom support at $0.1500 would invalidate the bullish outlook.
Despite the current price decline, Polygon shows potential signs of recovery, supported by the increase in NFT and stablecoin sales, though competition in the market remains strong.
