Key Takeaways:
- Polygon's upcoming developments have helped the price action of its native token.
- MATIC price spiked nearly 18% in the first two days of Feb.
PATNA (CoinChapter.com) — Ethereum scaling solution Polygon’s native token, MATIC, has started Feb on a strong note, spiking nearly 18% to form a daily high near $1.26 on Feb 2. Polygon’s upcoming developments might be the reason behind the MATIC price rally.
Hamilton Lane, an investment firm with nearly $830 billion AUM, has partnered with Securitize’s tokenization platform on the Polygon network to give access to individual investors. Hamilton would provide individuals access to a part of its Equity Opportunities Fund V via a new Securitize feeder fund.
Securitize would offer its feeder fund to eligible individuals with at least $5 million in assets. Moreover, the individuals must have at least $2 million in the US alone. The tokenized fund allows investors to invest in high-performing private equity assets with a minimum investment of $20,000.
Polygon makes these asset classes accessible, secure, and scalable, and frankly, the Polygon network is being built to become the home of global financial markets.
Said Colin Butler, Global Head of Institutional Capital at Polygon Labs
Meanwhile, Polygon’s increased volatility suggests investor confidence in MATIC has grown. Market analysis firm Jarvis Labs suggested that market participants should not take MATIC’s breakout from its long period of consolidation lightly.
However, the firm warned of signs of a pullback as well.
zkEVM Launch Help Boost Interest In Polygon
Zero-knowledge proofs confirm the truth of a statement without sharing the statement’s content or the verification method. A zero-knowledge (ZK) roll-up processes transactions in bundles and use bite-size data pieces that confirm transactions are ‘true.’
An EVM (Ethereum Virtual Machine) for Polygon’s ZK rollup would help developers smoothly move smart contracts from Ethereum to Polygon. Polygon launched its zkEVM public testnet in Oct last year, with the mainnet mainnet launch likely in early 2023.
Some older versions of Zk-rollups failed to execute some operations necessary for smart contracts. A zkEVM would help resolve the issues.
Also Read: AVAX Price Prediction: Avalanche Surges 15% as Bulls Aim $30
Polygon co-founder Sandeep Nailwal had tweeted in mid-Jan 2023 that the zkEVM mainnet launch had a launch date and would be happening “soon.“
Analysts expect zero knowledge rollups to be a big narrative in 2023. Crypto analyst Miles Deutscher believes a sustained rally would likely “occur closer to (and post) the launch of ZkSync, Polygon zkEVM, and StarkNet.“
The launch of Polygon zkEVM would attract new users and help boost MATIC prices.
Polygon (MATIC) Price Action Helps Form A Golden Cross
MATIC price ended Jan with more than 46.4% gains. The Polygon token continued its up-move in Feb. MATIC’s recent price action has helped the Polygon token’s 100-day EMA (blue wave) to move above its 200-day EMA (green wave) to form a bullish pattern called the golden cross.
Traders often consider the pattern an indicator of positive market sentiment and, thus, a buy signal. However, if Polygon bulls want to ensure the uptrend remains intact, MATIC price must break above immediate resistance near $1.26.
Moreover, a break and hold above immediate resistance could help the Polygon token price to rise to resistance near $1.4 before downside corrections pare gains.
Additionally, the recent price rally forced the relative strength index of the Polygon token into the overbought region, with a value of 71.09 on the daily timeframe. Overbought RSI levels have traditionally preceded bearish trend reversals. As a result, traders consider the pattern a sell signal.
Should a sell-off ensue, MATIC price might drop to support near $1.16. Breaching the immediate support level could force MATIC price to test support from its 20-day EMA (red wave) near $1.07 before recovering.
