Polygon (MATIC) seems to be going higher again after the downtrend in the previous session as crypto markets after the sharp decline of Bitcoin sold below the $ 50,000 mark. At the time of writing, MATIC / USD trading at around $ 2.56.
While MATIC succeeds in staying above the important level of USD 2.50 for the time being, the buyers were able to buy the new one ATH, which recently broke, does not hold up in the face of a deterioration in general market sentiment. However, Polygon’s long-term potential remains strong, especially at Ethereum‘s network congestion and gas fee problems will not be resolved in the foreseeable future.
What Polygon offers is an ecosystem for Ethereum-based dApps to operate more efficiently with faster transaction processing capabilities and lower costs. The Layer 2 Ethereum scaling solution recently received a significant boost after breaking DEX Uniswap Integrated into its ecosystem, the move of several more dApps could soon be repeated.
In the past few weeks, Polygon’s MATIC has been one of the strongest performers out there, even though most of the Layer 1Cryptocurrencies languished amid a pessimistic sentiment among crypto investors. Investors rely heavily on the solution skills of the Blockchain Ethereum scalability challenges, especially after recent investment in ZK-STARKs to add 1 billion users to the Ethereum blockchain.
While the long-term outlook for the MATIC token remains strongly bullish, the 14th largest cryptocurrency could be behind Market capitalization acted under pressure for a short time. Recent analysis by Santiment shows that there appears to be no profit-taking in the market at MATIC lately, but the number of whales piling up Polygons tokens has declined in recent days. The company predicts a short-term sell-off that could lead to a price correction before moving back up.
MATIC/ USD technical analysis
According to popular crypto influencer and analyst Justin Bennett, MATIC needs a strong one resistance overcome at $ 2.70 to go up. If Polygon can hold above this level and turn it into a strong support, its price could soon rise to $ 4-4.50.
On the 4-hour chart of MATIC / USD, the smaller moving averages together with the leading technical indicators MACD and momentum point to a bearish trend. However, the 50 EMA, 100 EMA and 200 EMA are also showing interest in bulls.
MATIC / USD
The price of Polygon appears to be rising again towards the pivot point at $ 2.60. Immediate support is well below it at $ 2.32 which is an encouraging sign. Breaking above the pivot point can boost investor confidence and propel MATIC higher, so let’s keep an eye on that level for now.
Source: Crypto News Deutsch