Key Takeaways:
- Polygon’s MATIC token price jumped 27% since Dec 1.
- Bullish tailwinds from listing by 21shares and expanding ecosystem are driving the bull run.
NEW DELHI (CoinChapter.com) — Polygon, the Ethereum scaling solution, is seeing increased institutional interest. The platform’s native token, MATIC price, jumped over 27% in two days, going from Dec 1’s low ($1.48) to Dec2’s high ($2.24).
The uptrend derives its fundamentals from reports of 21Shares listing a Polygon ETP on Euronext Paris and Amsterdam. 21Shares is the world’s largest issuer of cryptocurrency ETPs, managing more than $2.9 billion in 20 cryptocurrencies ETPs and 81 listings.
MATIC started Dec with a 12.4% intraday gain after rebounding from the 50-day MA and 26-Day EMA support confluence. With MATIC trending in an ascending channel, moving towards the upper trendline could be Polygon charting a new ATH around $3.
Moreover, whenever prices decline towards ascending trendline support, buyers step in to buy the dip. As such, MATIC is enjoying increased interest from retail investors as well. At present, Polygon has immediate resistance at $2.1. A move above immediate resistance would see MATIC target $2.5 resistance.
Besides the support confluence, Polygon has immediate support at $1.9. However, a marketwide sell-off could see prices retest the ascending trendline support near $1.6 before MATIC recovers. On the daily charts, the relative strength index is clocking 63.1, a technically neutral value albeit close to overbought regions.
Also Read: Classic triangle indicator projects Polygon at $3 as MATIC rallies over 12% in 24 hours.
Meanwhile, MATIC’s MACD charted a bullish crossover on Nov 29. A bullish crossover occurs when the MACD line (difference between 12-day and 26-day) moves above its signal line (9-day EMA of MACD).
Moreover, bars on the MACD histogram are expanding, indicating that the bullish momentum is increasing. Bulls would need to hold immediate support for MATIC to extend its current bull run.
Polygon (MATIC) – Fundamentals Abound
Ethereum’s transaction fees and congestion issues drive projects to other blockchain platforms, and Polygon is one of the projects that benefitted from the migration. As of Oct 21, Polygon had more than 3,000 apps on its platform.
Clem Chambers, CEO of crypto information website ADVFN.com, a self-proclaimed crypto bear, believes MATIC is one crypto that he can hold for the long term. He further noted that several other blockchains are taking advantage of Ethereum’s drawbacks, but Polygon is the one that attracts the most developers’ attention.
The ADVFN CEO emphasized that the increasing number of projects launching on Polygon is a strong sign of the platform’s future success. Although other Ethereum competitors have a larger market cap, Mr. Chambers believes Polygon would ‘catch up fast driven by this rapid adoption.‘
If you want to be long crypto you can just buy the majors, but further down the food chain is where the pop is. If Ethereum or Bitcoin doubled, the small stuff can x4, x10 and more. Of course, picking winners from losers is a tricky game in crypto.
Polygon however is a winner for sure.
Clem Chambers, ADFVN CEO, said
The veteran trader also predicted that Polygon would, ‘at least’, reach the market cap level of other Ethereum contenders.
Related: MATIC breaks out of Omicron FUD as Uniswap decides to move to Polygon blockchain.
The 21Shares Polygon ETP is also Europe’s first crypto product that tracks MATIC performance on Euronext exchanges. In Sept, the firm had launched six cryptos ETPs on the SIX Swiss Exchange.
Moreover, Clearpool, a decentralized marketplace for unsecured liquidity, announced its integration with the Polygon. The integration would bring Clearpool’s liquidity pools, thematic pools, and tokenized credit solution to Polygon. The high yield pools would likely bring more users to the Polygon network.
Recently, the Uniswap community also voted in favor of adding Polygon support for Uniswap V3. The process is currently in phase 2. On Dec 2, decentralized exchange IDEX’s version 3 went live on the Polygon network. As such, it is the first hybrid liquidity DEX on Polygon.
At the time of writing, MATIC was trading at $1.97, down 1.7% on the day.
