Key Takeaways:
- MATIC jumped 22% on Monday to reclaim $2 nearly three weeks dropping below it.
- The token reacted to news of its parent platform, Polygon, raising $450 million in the latest funding round.
NEW DELHI (CoinChapter.com) — Ethereum scaling platform Polygon’s native token MATIC registered its highest single-day gain in more than fourteen weeks on Feb. 7.
On Monday, the Polygon token jumped 22% from its intraday low of $1.70 to as high as $2.10. Its price had been increasing since Feb. 3, which brought its net rally to over 41%. However, it appears traders also decided to book profits near MATIC’s local highs, leading to a price correction on Tuesday.
Despite the uptrend, MATIC prices remained bearish across the short and mid-term time horizons as it traded below its 50-day and 100-day moving averages. However, the Polygon token appeared bullish on longer-timeframe charts.
In detail, MATIC has been watching its 50-day MA trendline near $2.11 as its interim resistance. Should the Polygon token come through the ongoing selloff round, its prices could rise to $2.24, while eyeing $2.45 as its primary upside target.
Meanwhile, MATIC’s relative strength index (RSI) failed to break above its multi-month descending trendline. It would need to break above the trendline resistance, as shown in the chart above, to sustain its bull run. Polygon’s RSI is currently neutral, clocking 54.95 on the daily charts.
Polygon’s MACD Shows Strengthening Bullishness
On the other hand, if MATIC fails to maintain its current uptrend, it could fall to its interim support near $1.90. Further downtrend could bring support from its 26-day exponential moving average near the $1.8 price level into sight.
Also Read: Polygon token MATIC flashed bearish technicals amid growing ecosystem.
Additionally, MATIC’s 200-day MA line acts as support near $1.68.
Trend-based momentum oscillator MACD is forecasting strong bullish sentiment for the Polygon token. The indicator painted a bullish crossover on Feb 3, which means the MACD line (difference between 12-day and 26-day EMA) moved above the MACD signal line (9-day EMA of MACD).
Moreover, bars on the MACD histogram, which plots the difference between the MACD and its signal line, are expanding. The move indicates that bullish momentum is strengthening for MATIC.
Polygon Raises $450 Million In Funding
MATIC’s double-digit gains on Feb 7 came on the heels of news of Polygon’s latest funding round.
In a funding round led by Sequoia Capital India, along with SoftBank Vision Fund 2, Galaxy Digital, and investors like Alan Howard, Polygon raised nearly $450 million through the private sale of its token MATIC.
Also Read: Polygon introduces EIP-1559 upgrade to burn MATIC.
The financing round also saw Alameda Research, Transcend Fund, Makers Fund, and several other participants. As per the Polygon team, the funding would help the platform pave the way for “mass adoption of Web 3 applications.“
The platform of choice to build on the blockchain today is Polygon. Thousands of developers across a range of applications are choosing Polygon and their complete set of scaling solutions for the Ethereum ecosystem
said Shailesh Lakhani, MD at Sequoia India
Polygon stated that it would use the funding to expand its scaling solutions along with Web 3.0’s mainstream adoption. In addition, the platform would continue to invest in zero-knowledge technology.
At the time of writing, MATIC was trading at $1.962, down 2.92% on the day.
