MATIC mooning towards record highs as Polygon furthers entry into DeFi space

Image by นัธทวัฒน์ วสันต์กนกพัชร from Pixabay
Image by นัธทวัฒน์ วสันต์กนกพัชร from Pixabay

Key Takeaways:

  • Cashaa has tied up with Polygon, a Layer Two solution on Ethereum blockchain.
  • MATIC, Polygon’s native token, is moving upwards and may soon break above a key resistance level.

NEW DELHI (CoinChapter.com) — Polygon, an Ethereum-based Layer-2 solution, is making moves to cement its position in the DeFi sector. Recently, Polygon Studios launched Lionel Messi-themed NFTs on the Ethernity Chain. Now, Casha, a crypto-friendly neo bank, has partnered with Polygon.

The move aims to reduce network fees for small transactions on the Ethereum network. Meanwhile, Polygon’s native token, MATIC, may be poised to chart new ATHs on the daily chart.

Polygon’s Leaping Strides

With Cashaa’s partnership, Polygon is moving ahead in the DeFi world. The network recently introduced former Barcelona player Leo Messi-based NFTs on the Ethernity chain, a big boost for Polygon.

Cashaa, a blockchain-based fintech company, envisions providing individuals access to the latest DeFi technologies. The firm offers personal accounts to everyone, starting with India. As Ethereum suffers from high network fees, Cashaa chose Polygon to solve fees issues.

Also Read: MATIC moons 15% as Polygon prepares to build a DAO for DeFi.

Additionally, Cashaa would release a bridge to facilitate its CAS tokens from Binance Smart Chain to Polygon. Using the bridge would allow CAS holders to minimize transaction fees and access Polygon’s expanding DeFi ecosystem. Also, users would be able to stake CAS on the Polygon network to earn rewards in CAS and MATIC.

Cashaa recently moved some of its products to the Polygon network to decrease the cost of the transaction to serve the masses. Congratulations on the release!

Sandeep Nailwal, Co-founder of Polygon

Cashaa would utilize MATIC in two products- Cashaa Earn and Cashaa Lend. Cashaa Earn would award 14% annual interest on deposits and support several fiat currencies and cryptocurrencies.

On the other hand, Casha Lend plans to design a loan solution with 0% interest rates on crypto-collateralized fiat loans on Bitcoin, Cashaa, Ether, and Matic. As such, it would allow users to take loans to purchase products from over 2,000 partner retailers, including Amazon, Apple, and Flipkart.

MATIC Price Chart

MATIC prices are nearing key resistance at $1.7. Twitter-based analyst Kevin Svenson believes if MATIC breaches above the resistance and charts new highs, the Polygon token might chart new all-time highs.

For now, the $1.70 resistance stands strong, though MATIC did breach above it on August 21. After that, however, prices pulled back, and the Polygon token is now moving horizontally.

Also Read: Massive bullish indicator on Bitcoin charts sets BTC profit target at $100K.

MATIC is currently trading above the 50-Day (Green) and 200-Day (Yellow) Moving Average trendlines, putting the Polygon token in an uptrend across all time horizons (short, mid, and long-term).

Polygon prices are moving upwards on the daily chart. Source: MATICUSD on Tradingview.com
Polygon prices are moving upwards on the daily chart. Source: MATICUSD on Tradingview.com

If prices start falling, MATIC will find support at $1.49. Further support is near the 26-Day (Red) Exponential MA at $1.348 and the 200-Day MA at $1.144.

Once MATIC breaches above $1.70, the next target for bulls will be at $1.78, however, if bulls push the Polygon token above the resistance, the next resistance is at $2.034, which would mean a gain of 29.39% from August 24’s low of $1.572.

Momentum oscillators for Polygon on the daily chart. Source: MATICUSD on Tradingview.com
Momentum oscillators for Polygon on the daily chart. Source: MATICUSD on Tradingview.com

Trend-based momentum oscillator MACD is bullish as well. Bars on the MACD histogram are positive, which means the MACD line (difference between 12-Day and 26-Day EMA) moves above the MACD signal line (9-Day EMA of MACD).

However, the relative strength index for MATIC is very near the overbought regions with a value of 69.28. In detail, an asset with RSI above 70 indicates a trend reversal may be in the works. However, the RSI trendline is moving downwards, which may give hope to the bulls.

At the time of writing, MATIC was trading at $1.599, down 1.54% on the day.

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