The Polygon price prediction could be swayed by the adoption of the network by the Balancer protocol. Balancer is a solution that aims to lower gas fees for transactions on the Ethereum network. However, the volatility in gas fees seen recently with Ethereum transactions severely limits the ability to create, join or leave staking pools. Polygon is now a practical alternative as it has heavily reduced these costs.
By leveraging on Polygon, Balancer aims to use a platform that is gaining traction as a preferred L2 for Ethereum. Polygon satisfies this criterion, and the combination of Balancer and Polygon could help increase liquidity in DeFi. Improved accessibility via lowering of trading fees to zero is also a unique selling proposition offered by Balancer’s integration with Polygon.
Technical Levels to Watch
The current price picture favours a bearish polygon price prediction, as Wednesday’s pinbar has been followed by a bearish candle, albeit in low volumes. There is an ascending trendline that connects the lows of 4 May, 23 May and 22 June. This trendline must be taken out by bearish pressure for the initial downside target at 0.9366 to be attained. Below this level, 0.7341 becomes the new support level.
On the other hand, a bounce at the ascending trendline support allows the bulls to extend the price towards the resistance at 1.2368. Above this level, 1.4323 and 1.7116 form other targets to the north.