The Polygon (MATIC) price has crashed to a new post-rebranding low

The POL token retreated to a low of $0.20, down by over 73% from its highest point in December last year.

The Polygon price has crashed to a new post-rebrand low even as its nonfungible token (NFT) ecosystem did well. The POL token retreated to a low of $0.20, down by over 73% from its highest point in December last year.

Courtyard NFT Sales Are Rising

The Polygon ecosystem has not been doing well as competition with other layer-2 networks like Base, and Arbitrum jumped. As a result, Polygon has moved out of being a top-ten chain by the total value locked (TVL) in the past few years.

A bright spot in the Polygon ecosystem has come from its role in the non-fungible token industry, where Courtyard has become the hottest collection. Data by CryptoSlam shows that Courtyard sales jumped by over 47% in the last 30 days to over $55 million.

These sales were much higher than DMarket, the second most profitable collection in the last 30 days. Courtyard’s number of transactions rose by almost 5% to 517,509 in this period.

Courtyard’s performance was much higher than that of Pudgy Penguins, one of the most popular NFT collections that had $7.6 million in sales. However, there are signs that Courtyard is losing momentum, as the floor price continues to move downwards. OpenSea data shows that the floor price has retreated to 38 POL, down from 45 POL a week ago.

Still, Courtyard’s performance has not been enough to alleviate Polygon’s challenges. TokenTerminal data shows that the network’s revenue in March crashed by 65% to $96.5k, while the earned fees fell by 47% to $356k.

The other risk is that NFT collections are often seasonal. In many cases, NFT sales surge and then crash within a few months as traders moved to other collections.

Polygon Price Analysis

The daily chart shows that the Polygon price has been in a strong downtrend in the past few months. It has dropped from a high of $0.7687 in December to the current $0.20. It has constantly remained below the 50-day moving average.

On the positive side, the coin has formed a falling wedge pattern, a popular bullish reversal sign. Also, the POL price has formed a bullish divergence pattern as the MACD indicator continues to move upwards. The BBTrend indicator has also formed a bullish divergence pattern.

The POL price has formed a double-bottom pattern at $0.1980. Therefore, there is a likelihood that the coin will bounce back and possibly retest the key resistance at $0.2855, its lowest swing on November 4 last year.