The Polygon project is a gem.
But, safe from the “heavy handiness” of the market in the past few weeks, MATIC is, undoubtedly, one of the top performers.
For perspective, we have to check out market performance year-to-date.
At spot rates, MATIC is up a massive 70X, outperforming ETH and BTC.
MATIC/USDT Market Performance
That MATIC prices are also in green, adding impressive double digits versus BTC, ETH, and the USD in the last month of trading shows how impactful Polygon has been.
If anything, Polygon offers a very reasonable value proposition for DeFi. It is especially so for users who, being thrilled by Ethereum’s ecosystem, are discouraged by the unreasonably high fees—at least before Vitalik intervened in mid-May 2021. Gas fees in Ethereum are now down to roughly $4—a massive lift and catalyst for activity in the pioneer smart contracting platform.
The quest for Layer-2, scalability, and building a thriving, interconnected and interoperable blockchain ecosystem makes Polygon. And its rise reflects the desire from the trading community to make this a reality.
On the last trading day, Polygon prices are down 12 percent and deeper in red week-to-date. MATIC prices are down 20 percent versus the USD, trailing ETH and BTC by around 17 percent in the same period.
Visible from the daily chart, MATIC prices are also consolidating—possibly distributing—at around H1 2021 peaks. How MATIC/USDT prices react in the subsequent few sessions—especially at $3 and the middle BB—the middle BB in the weekly chart—would shape MATIC’s price action in the medium term.
This explains why traders are non-committal across the board.
Even so, most are confident of Polygon’s prospects. However, the parabolic expansion of MATIC prices may be nearing an end, and a sizable correction could be on the offing.
MATIC/USDT at a MAKE or BREAK Point
It is the view of Wolf_Of_Alt_Street on Trading View.
The technical analyst notes that the coin is trending within a rising channel with a well-defined trend line. The 50 EMA forms MATIC/USDT support line.
Besides, prices are now within a symmetrical triangle. If, therefore, the uptrend is valid and bulls force Polygon’s valuation higher above $3, the coin could continue with its chart higher.
However, if there is a break below the main support trend line, MATIC could drip lower.
In the midst of this, the analyst reminds the trading community that the Polygon project has solid fundamentals. He further adds that Polygon is an “interoperability and scaling framework for building interconnected blockchain networks” and is a “good project.”
MATIC Price to $4?
This is the view of another trader P_S_trade on Trading View.
Nonetheless, the MATIC race to $4 depends on how prices react at H1 2020 peaks—or $3.
At present, he notes the consolidation and the increasing bear pressure, guided by price action in the daily chart.
Traders might be “hopeful” of the project, saying it is popular. But, if MATIC sellers take charge, the coin may crater back to sub-$1, more than halving from spot rates.
On the reverse side, successful traders may thrust the coin to $4 if bulls shake off the selling pressure.
Polygon is an “anomaly” and Ready to Explode
On YouTube, On the Block thinks MATIC is “sitting just there” and “ready to explode” if price action in the 4HR and Daily charts are anything to go by.
At present, MATIC is oversold in the 4HR chart, with the RSI bouncing off from the oversold territory.
Charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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