- Polygon might be in talks with VC firms for funding to the tune $50 million to $150 million.
- The blockchain’s native token, MATIC, jumped 43.8% in the first two days of the week.
NEW DELHI (CoinChapter.com) — Ethereum scaling solution Polygon attracts investors’ attention.
According to reports from a tech and startup news website, several investors, including Sequoia Capital India and Steadview Capital, are in talks with Polygon to provide funding for the project through token purchase.
The proposed investment could be anywhere between $50 million to $150 million. Investors would likely purchase the tokens at a discount, as is the norm in such transactions. In addition, an investment would highlight Polygon’s expanding ecosystem and the growing number of projects on the blockchain.
Polygon has had a great run in 2021, growing by 13,731% YTD. Moreover, the rally was backed by excellent fundamentals, including new projects and partnerships. Currently, decentralized crypto exchange Uniswap is in phase 2 of migrating its Uniswap V3 to the Polygon network.
Earlier this year, billionaire investor Mark Cuban had added MATIC to his portfolio, resulting in a sizeable investment return.
Moreover, Polygon has more than 3,000 apps on its platform as of Oct’21.
Meanwhile, MATIC Prices…
…rebounded from Saturday’s Bitcoin-led crash in style. The Polygon token registered a relatively muted growth on Dec 5, gaining nearly 4% intraday. However, Monday saw MATIC jump over 36% between low ($1.7) to high ($2.3) levels before prices pared.
In addition, Polygon tested its ascending parallel channel’s lower trendline support on Dec 4 before rebounding. The ascending trendline forms a support confluence with the 100-day MA line. If MATIC continues moving in the channel and reaches the upper trendline, it would chart a new ATH around $3.
Before it reaches the channel’s upper trendline, MATIC has immediate resistance at $2.53. Moreover, if news of the upcoming investment pans out, the bullish tailwinds will propel MATIC to $2.73. Finally, further upside movement would see Polygon to $3 before any pullbacks occur.
However, if the uptrend breaks down, Polygon has immediate support at $2.1. A selloff could further push prices down, bringing the $1.9 support level, near MATIC’s 26-day EMA, into play. In addition, trend-based momentum oscillator MACD continues to be bullish after plotting a bullish crossover on Nov 29.
Furthermore, bars on the MACD histogram are expanding, indicating that the MACD line (difference between 12-day and 26-day) is moving further away from its signal line (9-day EMA of MACD). Expanding bars are a sign of increasing bullishness in momentum.
The relative strength index is nearing overbought levels, clocking a currently neutral 66.05 on the daily charts. RSI above 70 would mean MATIC is ready for a reversal.
MATIC 2021 or ETH 2017?
Twitter-based crypto analyst TechDev shared a post in which he compared the price movement of Ethereum (ETH) during its 2017 rally to MATIC’s 2021 bull run.
If MATIC follows a similar path on its weekly charts, the Polygon token would likely surpass its current ATH target of $3 by a great margin. As such, it seems analysts and investors both are bullish about Polygon’s prospects.