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MATIC up 6.5% in the last 7 days – Can it sustain gains for another week?

In 2022, Polygon’s native token dropped in value MATIC 64%. But the network started this year on a positive note, with the price skyrocketing 8% according to the charts. But can MATIC maintain this momentum?

On-chain developments play a major role for MATIC

The Layer 2 ecosystem is seeing growth in on-chain developments. Shortly before the turn of the year, Polygon’s first prediction market Bhavish Finance did several records which brought Polygon into the limelight. Uniswapa decentralized exchange in the ecosystem, completed 2022 with an annual volume of 28 billion US dollars.

The DEX has surprisingly achieved this with a sub-$100M TVL, but at the time of writing Uniswap’s TVL on Polygon is at $111.21 million, according to DEX’s public dashboard.

MATIC up 6.5% in the last 7 days – Can it sustain gains for another week?, Crypto Trading News

MATIC up 6.5% in the last 7 days – Can it sustain gains for another week?, Crypto Trading News

Diagram: Uniswap.org

However, big news precedes these bullish developments NFT-Arm ahead of polygon. DeGötter and y00tstwo of the biggest names Solana, will bridge their collections on Polygon and Ethereum in the 1st quarter of 2023.

This would inevitably attract interest in Polygon’s NFT market and push MATIC’s price up. With the approaching schedule of “Shanghai” network upgrade EthereumPolygon’s main offering, which is low gas fees due to better roll-up protocol, is being questioned.

Against this background, it remains to be seen what developments will occur in the chain differentiate Polygon with Ethereum’s upgrade and other L2 protocols.

Crypto FUD will strengthen bears in the long term

The crypto market has definitely suffered from last year big breakdowns. But the FUD (fear, uncertainty, and doubt) that have led to these events may be amplified as Huobi, a centralized exchange, appears to be melting down in real-time.

Recent news shows that the CEX will be drop 20% of its employees. Tweets about Huobi’s situation show that Justin Sun was Huobi’s touted shadow owner convert Billions of its cryptos in fiat on Binance.

MATIC up 6.5% in the last 7 days – Can it sustain gains for another week?, Crypto Trading News

Total Market Cap of MATIC at $7B on the Daily Chart | Chart: TradingView.com

The exchange itself can also be observed increased withdrawals in the last few days. This led to some speculation that the exchange could be the next FTX. Any negative development here would impact Polygon as bankruptcy news hits the crypto markets particularly hard.

🟡 What could happen to Huobi?

– Huobi recorded an outflow of $80 million (4%) and $133 million (7%) in 7D in the last 24 hours compared to its clean assets of $2 billion
– Could halt withdrawals and activity if situation becomes disproportionate
– What you should do now, risk-averse, is back off and keep yourself safe

5/pic.twitter.com/osCCyCzpGa

— Rock 🪨 (@DataaRocks) January 6, 2023

However, in the short to medium term, MATIC has some room for growth as the current support at $0.7538 is proving to be a handicap for the bears.

Previous bullish on-chain developments are also helping to keep investor sentiment positive. But with the token’s strong correlation with ETH, negative macros could bring down the king of altcoins along with MATIC.

Investors and traders should target the $0.8106 price resistance to continue MATIC’s bullish move.

-Featured Image: The Daily Hodl


Source: Crypto News Deutsch

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