Cryptocurrency Polygon (Matic): Analysis And Forecasts
The current month has been a time of favorable news for the Polygon network. In particular, on October 19, Nubank, one of the largest digital banks in the world, announced the creation of its blockchain and native Nucoin token based on the Polygon Supernets protocol. Notably, the bank has financial backing from many global players, including billionaire Warren Buffett’s Berkshire Hathaway.
And on October 26, the BitPay payment system allowed transactions using the Polygon (MATIC) coin. Its holders, for example, can now pay for purchases at large markets through their BitPay wallet. The first of these was Panini America, known for its trading cards, including NFTs.
Fundamental factors had a positive impact on the cryptocurrency exchange rate. The MATIC/USD chart shows a good uptrend, which became part of another, more global trend that began in June. But how long will the strengthening of the coin last?
In this article, we will evaluate the current position of Polygon (MATIC) in the cryptocurrency market and determine the potential for further movement of the coin.
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Polygon on the crypto market
According to CoinMarketCap, Polygon, the network’s cryptocurrency of the same name, ranks 11th by market capitalization among cryptocurrencies. The coin was about $4 billion short of being in the top 10.
According to CoinCheckup, interest in cryptocurrency has increased over the past 30 days. Since October, Polygon’s market capitalization has increased by approximately $1.5 billion (from $6.2 billion to $7.6 billion), with its share in the cryptocurrency market increasing from 0.65% to 0.75%. On October 1, the trading volume was $766 billion, and on October 26, it crossed the threshold of $1 billion.
The number of persons involved in coin transactions has also increased. Token Terminal demonstrates, albeit short-term, a two-fold increase in players in the second decade of October (from approximately 362 thousand to 738 thousand).
The price chart signals bullish rather than bearish sentiment. On June 18, the price bounced to the top and then rallied within two months, narrowly missing the 0.295 support level (see the bottom line on the chart). There was a slight correction in August and September, and a bullish flag was formed – a signal to continue the trend. Last week the flag was pierced by a green candle.
Although there are signs of an uptrend, the possibility of a false breakdown and subsequent rollback cannot be ruled out. At the moment, we observe a flat, within which the price movement is limited by two levels – 0.69 and 1.05 (see the middle and upper lines, respectively). The latter is a robust level of support (see September 2021 data) and resistance (see August 2022 data). As part of an uptrend, it will not be so easy to break through it.
Other indicators also give a blurry picture. The Relative Strength Index (RSI), according to TradingView, is in the center of the neutral zone.
And futures, according to Coinglass, are distributed roughly equally between long and short positions.
The market is currently dominated by uncertainty about further price movement, which prevents building long-term strategies.
At the moment, the market is treading water in indecision. Given the positive news background and the bullish characteristics of the Polygon cryptocurrency, the forecast for its exchange rate is more optimistic. In the short term, the coin will continue to grow. However, when drawing up long-term plans, it is worth taking a closer look at the level of 1.05. If the price breaks, we boldly keep a long position, which can hold until the next resistance level – 1.35.