Key Takeaways:
- Polygon (MATIC) broke above the $1.5 level for the first time in more than a month.
- Several fundamentals pushed MATIC upwards.
NEW DELHI (CoinChapter.com) — Polygon’s native token MATIC gained 36.9% between low($1.207) to high($1.652) levels on Friday. The move upwards sparked hopes of a bullish weekend ahead and a move towards $2.00 levels.
Moreover, Friday’s jump marks MATIC’s highest single-day gains since July 21.
Polygon, often considered one of the Ethereum-killer networks, is a blockchain scalability solution to improve interoperability. The network uses MATIC tokens for governance, staking, and gas fees on its platform.
Polygon Price Movements
MATIC was trading in a descending triangle pattern as it started Oct. However, the Polygon token broke out above the bearish triangle pattern and invalidated it. After breaking out, though, MATIC began moving laterally between $1.13 and $1.35.
Oct 15’s jump propelled MATIC out of its rut when it sped past the $1.35 level. As a result, bulls would now try to consolidate above the $1.5 level, which is vital for MATIC to continue its uptrend. Friday’s high of $1.652 acts as immediate resistance for the Polygon token.
Also Read: Ethereum alternatives leave Ether behind in September gains.
If MATIC consolidates above immediate resistance, bulls will likely push prices to $1.75 before any corrections occur. Continued buying pressure would likely see prices rise to $1.872 before the resistance caps any further upside movement.
On the other hand, if profit-taking takes hold, MATIC might fall below immediate support at $1.23, near MATIC’s 26-day Exponential Moving Average. The Polygon token’s 200-day MA line acts as support near $1.134. A sustained sell-off might see prices test support at $0.98, which has remained unbroken since July 27.
Also Read: BNB pumps 11% as Binance pledges $1 billion to boost BSC growth.
Meanwhile, the trend-based momentum oscillator charted higher bars on its histogram, indicating Oct 15’s jump boosted MATIC’s bullish momentum. The histogram tracks the difference between the MACD line (difference of 12-day and 26-day EMA) and the MACD signal line (9-day EMA of MACD).
The momentum is bullish when the MACD line is above its signal line, as positive bars on the histogram indicate. Furthermore, the relative strength index for the Polygon token is neutral, with a value of 64.64.
What Caused Polygon’s Jump?
Polygon traders’ buying spree began after Upbit, the largest South Korean crypto exchange (by volume), announced listing MATIC pairs on its trading platform. The exchange also listed Solana (SOL) and NuCypher (NU) pairs. Korean traders can buy, sell or transfer MATIC with a minimum deposit of 10 MATIC.
In other news, Yearn incubator YFI Combinator launched its first project, a ‘multi-dimensional yield farming protocol’ named Tesseract Finance. As per the post, Polygon is the first dimension of the project with four main vaults – USDC, DAI, WBTC, and WETH. Leveraged AAVE would serve as a common strategy for the vaults.
The initial deposit limit for the vaults is currently $1 million per vault to ensure farmers’ safety. In detail, yield farming is the practice of lending or staking cryptocurrencies in exchange for high returns or rewards.
The announcement also stated that Polygon is the protocol’s first deployment, with others planned for Ethereum and other networks supporting yield farming. Furthermore, Tesseract highlighted that developers conceived of a yield aggregator immune to the Ethereum network’s gas issues, transaction times, and scalability challenges.
As a result, Tesseract chose Polygon to launch its yield aggregator platform.
Klever, a crypto wallet ecosystem, announced its partnership with Simplex to help users buy MATIC in the Klever app using a debit or credit card. Klever is a decentralized multi-crypto wallet, while Simplex allows traders to buy cryptocurrencies using their credit cards.
The crypto wallet firm announced integration with Polygon’s full-stack scaling solution. As a result, users can now hold, stake, sen, swap, and now buy a cryptocurrency.
At the time of writing, MATIC was trading at $1.511, up 19.30% since trading began Friday
