Polygon’s POL Price Breakout: POL flips Ethereum on key metrics

This year the price of polygon is in freefall and approaching its lowest point for this year.

PolygonPOL() fell to $0.1800, a 76% drop from the highest level of this year. Its market capitalization has dropped from almost $6 billion down to $1.88billion, representing a drop of over $4 billion.

Polygon may be about to break out after flipping Ethereum.ETHWeekly non-fungible token sales CryptoSlam data The graph shows that NFTs sales in the Ethereum network fell 5.7%, or $23 millions.

Courtyard was the main driver of Polygon’s NFT sales, with over 18 million dollars in sales. Courtyard, the other top seller in Polygon’s NFT volume, accounted for over $18 million. NFT Polygon’s collections included OKX NFT Creation, which sold for $4.9 Million, as well as DNS.

Polygon has also gained traction within the stablecoin industry, thanks primarily to Polymarket. Artemis data Polygon’s stablecoin supply has grown by 85% to $2.4B in 30 days. However, the amount of transactions jumped by 39% up to 92.6M.

Polygon faces a major challenge from the other layer-2 networks that are growing. The newly-launched Unichain already has $1.16 Billion in value. Base has over $4.9 Billion in TVL. Its monthly decentralized trading volume is now over $28 Billion.

Technical analysis of the Polygon Price

On the daily chart, Polygon’s price slowly forms a double bottom pattern, starting at $0.1500. The neckline is at $0.2755 – its high in May of this year. The neckline of this chart is just below the Fibonacci level for 23.6% retracement.

POL formed another popular reversal pattern known as a “falling wedge” which can be defined by the convergence of two trendlines. The lines are close to convergence which could lead to an upward breakout.

The neckline is at $0.2755. This would represent a 53% potential gain over the current price. The bullish view would be invalidated if the price dropped below the double bottom at $0.1500.