- The internet of blockchains Polygon’s native token MATIC hints at a decline after a possible short-term 50% uptrend.
- Polygon’s co-founder Sandeep Naiwal stated that Polygon trumps Solana in daily active users and involved developers.
YEREVAN (CoinChapter.com) — Polygon bulls pushed the MATIC price to $2.12 in the previous 24 hours. The digital asset rebounded after a 35% crash in the wake of a new all-time high on Dec 27. However, there’s a 50% uptrend in MATIC’s future if it remains on its current technical setup tracks.
Polygon’s bullish daily chart
Polygon’s in-house token formed an Ascending Channel on the daily chart, as did several other altcoins.
The formation could take MATIC to a new all-time high of approximately $3.00 before the end of January. The Channel features parallel trendlines that enclose the price action and drive it up while preventing sharp moves outside the formation.
The Ascending Channel does NOT predict a particular bias after a token breaks out of it. However, it is instrumental in determining the short-term price action vector. As MATIC retested the support trendline over the weekend, Polygon bulls could have an uptrend to celebrate, as the token takes off to retest the resistance.
Nevertheless, the weekly chart revealed that the celebration could be brief, as MATIC is headed for a crash based on several technical indicators.
MATIC weekly chart
Polygon’s token flashed bearish warnings on the weekly chart. The digital asset formed a Rising Wedge, which features two converging trendlines, predicting a looming decline. Since the previous all-time high in mid-May, the reversal pattern has been in effect.
Moreover, MATIC faced a bearish relative strength index (RSI) divergence and a trading volume divergence. In detail, the RSI is a momentum indicator that reflects the traders’ perception of an asset’s return capabilities. While the price action printed a new ATH, the RSI registered a lower high (marked with dashed lines on the chart above).
The trading volume marked the same deviation. Price action progressed, while the trading volumes declined over the same period. The noted divergences are red flags for traders, hinting at a looming trend reversal and supporting the Rising Wedge prediction.
Polygon’s chart fell in sync with the rest of the bleeding market. However, the blockchain signed a new deal over the weekend.
What’s new with Polygon?
The internet of blockchains will deploy Universe Finance “within a few days.” The latter announced the news on Jan 10, noting that it “knows the importance” of low gas fees and fast transactions.
Additionally, Polygon’s total value locked (TVL) held up against the unstable crypto market and clocked at $9.51 billion on Jan 10.
Moreover, Polygon’s co-founder Sandeep Nailwal commented on the blockchain’s success, comparing it to Solana’s smart contract platform. The executive noted that Polygon beats Solana in the number of daily active users (DAU) and the number of active developing teams involved in various projects on the blockchain.
Mr. Nailwal also added that newer Web 3 entrants’ views on Polygon vs. Solana are influenced by “awesome US institutional marketing.”