Polygon is in the news again, and this time around its price has seen some significant action.
Quite a few announcements in the crypto and blockchain community went live yesterday. Among which were the Iota foundation's Shimmer network and Binance's 1.2% tax burn mechanism for Terra Classic.
Polygon too was among the organizations that had something for its users, investors, and traders yesterday. The polygon foundation announced that it had teamed up with Alpha Venture DAO and Icetea Labs for the launch of an acceleration program for blockchain startups all over the world.
This partnership between polygon and Alpha Venture and Icetea aims to provide mentorship, funnel resources, and provide business acumen to web3 companies from all over the world.
Naturally, such a big announcement had an effect on the price of MATIC, the native cryptocurrency of the network.
Polygon's partnership with Icetea and Alpha Venture features five stages including
On top of that, polygon also announced Polygon Bootcamp Africa, another training program that aims to groom and prepare the next generation of blockchain developers in Africa.
Right after the announcement of this partnership, the price of MATIC experienced an uptick that is still on its way upwards.
According to the Elliott Wave theory, most price movements in the history of finance are usually made up of five waves. Three price movements to the up or downside, and two corrections.
By this metric, the price of MATIC appears to have completed this five-wave cycle, accounting for the price peak it experienced on August 15th.
The other side of this theory is that after this price movement in the required direction, there is usually a three-wave correction in the opposite direction, before further movement.
Illustrated below are the five-wave price movement (blue lines), and the three-wave correction (red line).
This price decline in the three-wave correction brought the price of MATIC to where it now sits at the $0.7781 level, validating the 0.5 level on the Fibonacci retracement tool.
The readings from the RSI on the weekly charts also show a potential breakout from its previous bearish divergence. If this breakout were to occur, we may see a price increase towards the $1.64 levels and the resistance on it.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)