In this article, we will use technical indicators such as the 100-day and 200-day moving averages, as well as identify probable support and resistance levels, to evaluate MATIC, Polygon’s native coin.
Polygon (MATIC) is a blue chip Layer-2 blockchain protocol that has partnered with multiple top-tier companies, actively supporting and developing the Web3 space.
With their Layer-2 solution aimed at improving Ethereum’s scalability, Polygon has maintained its position as the leading Layer-2 blockchain, which is crucial for accommodating the ever-increasing number of dApps and blockchain users. Polygon accomplishes this by leveraging a network of side chains that are capable of processing transactions in parallel, which leads to reduced costs and shorter transaction times.
With that said, its native token, MATIC, has been one of the most talked-about cryptocurrencies in the market recently, and many investors are keeping a close eye on its price action.
100-day and 200-day Moving Average
The 100-day and the 200-day moving average are two key technical indicators considered while examining the price movement of MATIC. On April 8th, MATIC has dropped below the support level, which indicates that there is the potential for the token’s value to continue falling. The 200-day moving average, which is currently at 0.99, will serve as the next point of support for the token. It is important to point out, however, that MATIC has been maintaining its position relative to its 100-day moving average.
Key resistances levels
Considering that the token is being guarded by the two moving averages, the following step is to determine the next possible resistances that the token may face. The first point of resistance is located at 1.25, which the price attempted to hit on March 19th but was unable to break past. The second resistance is at the 1.52 level, which has not been broken since April 2022. It has been more than a year already since MATIC pushed above that particular level.
The price action of MATIC reveals an uptrend momentum as well, with higher highs as well as higher lows being seen. This uptrend is becoming more established, and at some point, it may develop into an ascending triangle, which would provide an indication of how MATIC might carry out in the following months to come. In order to continue moving upward, MATIC must first respect the trendline and then overcome the resistances it presents.
In conclusion, the recent partnership with major corporations and the current technical analysis of MATIC suggest that there is a strong potential for an upward trend in the market. In addition, investors should consider the volatility of the market and ensure they are properly informed before making any investments – this includes researching the asset thoroughly and discussing their current circumstances with trusted financial advisors. With this knowledge, investors can make informed decisions about their investments and potentially benefit from the potential of the token or any other cryptocurrency.
Rickie Sanchez is an article writer specializing in cryptocurrency news. Since late 2017, he has been actively investing in cryptocurrencies. He is enthusiastic about everything that has to do with crypto and he hopes that the readers of his articles in the years to come will gain a massive understanding of blockchain technology.