Belgium (CoinChapter.com) — Of the many cryptocurrencies on the market, MATIC – the currency of the Polygon ecosystem – seems to struggle a fair bit. Despite a recent bull run, the market has been unable to recover from the recent dip. Community members and speculators remain hopeful, but the current momentum isn’t looking all that promising.
The Recent MATIC Price Action
There is one golden rule in financial markets: what goes up must eventually come down. In some cases, that crash can be very steep, or it can be relatively modest. MATIC Holders will not be too happy with the current price, although it is still 57.8% higher than a week ago. MATIC’s value is still up by 388% in the past month, which is more than acceptable.
Those who look at short-term market changes, however, will face a bit of an awkward situation. The bearish price pressure appears slightly less outspoken than it was before, but the market isn’t returning to $2 just yet, let alone $2.2 or higher. It is remarkable how different markets handle the current sentiment, yet MATIC still faces a near 8$ loss for the day. Per Tradingview, the market has a “BUY” signal, though, so anything remains possible.
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Future MATIC Price Outlook
Traders and speculators will often have different opinions on where the markets will head next. Cvotrades expect a bullish reversal capable of pushing the price to $3.7in the short term and as high as$5 longer-term. A lot of this prediction will hinge on how fast Polygon’s asset recovers from the current dip and whether it can break the newly created resistance levels.
In a follow-up, however, the trader explains how MATIC will need to remain above $1.62, and preferably, over $1.72. Losing control of these levels can trigger a further continuation of the downtrend. Should these levels break, a drop to $1 is not impossible. A bit of a worrisome outlook given the range MATIC trades in currently, although previous attempts to break below $1.62 were unsuccessful.
The outlook on TradingView appears to be slightly more bullish. FieryTrading indicates MATIC is still trading within its channel – which seems to add up – and can continue its uptrend to $3.8 and higher in the coming weeks. A favorable outlook, although it will only come true if the market remains above $1.7 in the coming days. That level is under a lot of pressure at the moment.
Developments Behind The Scenes
Although the market sentiment tells a tale, it is never the full story. Taking a look at what is happening behind the scenes is always required. For Polygon and its native asset, interesting developments take place regularly.
One such development involves the building of a Platform for BlockchaiN Document Transfer by CargoX. Although it is built on the Ethereum blockchain, it will be powered by Polygon. With its high throughput and low fees, Polygon is a better option than Ethereum itself. This may not bring any value to MATIC, yet it is an interesting bit of news regardless.
A more intriguing idea comes from the Uniswap community. Since the release of Uniswap V3, there have been proposals to bring this technology to the Polygon ecosystem for faster transactions and lower fees. Moreover, it still allows for the Optimism scaling deployment to occur. While not confirmed as of yet, the proposal sparks some interest regardless. Such a deployment will not make much difference for MATIC’s price, yet the overall interest in Polygon can do wonders.
Closing Thoughts
Many different factors are at play as far as Polygon and MATIC are concerned. Some major developments and ideas will increase overall interest in the ecosystem but will do almost nothing for the price. The current market momentum remains relatively bearish for nearly all cryptocurrencies, and it will prove difficult to break this cycle without either Bitcoin or Ethereum moving up significantly.
That said, the overall performance by MATIC this past week remains bullish. Some of its gains have been wiped out, yet the asset is still performing better than most others. Continuing that trend can prove somewhat difficult, however. The markets are in an uneasy state right now, and the momentum can easily swing in either direction.
JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.
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