Why is Polygon (MATIC) price up today?

July 14, 2023 Coin Telegraph

Arbitrum

MATIC price surged due to favorable regulation, increased network use and anticipated Polygon 2.0 upgrade that could see a rebrand to POL.

Polygon (MATIC) has experienced a significant price increase on July 13, driven by several key factors. These include a recent positive court ruling for XRP, increased activity of decentralized applications (Dapps) on the Polygon Network, and the highly anticipated launch of Polygon 2.0.

*MATIC/USD 12-hour price at Coinbase. Souce: TradingView*

Within just 12 hours, MATIC witnessed a remarkable 24% rally, propelling its price to $0.89 on July 13, reaching its highest level in five weeks. Although the initial excitement subsided, the token managed to sustain a daily gain of 15%, indicating growing demand from traders and investors.

MATIC seizes opportunity from the SEC's loss

On July 13, the United States District Court for the Southern District of New York ruled that XRP is not a security. This court decision could have far-reaching implications for other alternative cryptocurrencies, particularly after the U.S. Securities and Exchange Commission (SEC) specifically classified MATIC as a security during its legal battle against Coinbase on June 6.

As investors evaluated the risks associated with holding and trading assets that could potentially face delisting from regulated centralized exchanges, the price of MATIC plummeted by 37% over the next five days, hitting its lowest point in 11 months on June 10.

The court ruling determined that XRP holders do not have a reasonable expectation of earning profits from the efforts of others. This outcome represents a positive development for the entire cryptocurrency industry.

Apart from the immediate impact on MATIC due to its initial coin offering (ICO) in 2019, the court decision also affects Ethereum, upon which the Polygon network relies for its infrastructure. Ethereum faced a similar risk of being deemed a security, particularly during its ICO phase. On April 18, SEC Chair Gary Gensler declined to clarify whether ETH was a commodity or a security during a Congressional Committee hearing.

Polygon gains traction as Ethereum scalability solution

Additionally, the activity of Dapps on the Polygon Network has witnessed substantial growth in recent weeks. This development bodes well for MATIC, indicating that the network is possibly gaining traction as the go-to scalability solution for the Ethereum network.

According to data from DappRadar, the number of active Dapps on Polygon has surged by 47% in the past 30 days.

*30-day Polygon Network’s applications activity. Source: DappRadar*

The increase in Dapps activity spans various sectors, including interoperability, NFT platforms, Web3, DEX exchanges, and games.

Anticipating a MATIC price surge with Polygon 2.0 upgrade

The Polygon development team has proposed a token upgrade on July 13, allowing holders to validate multiple chains. The proposal awaits community approval and, if successful, will result in a rebranding from MATIC to POL.

According to the announcement, the Polygon 2.0 upgrade will facilitate the support of multiple chains without compromising security. It will also introduce incentive streams for validators, including zero-knowledge proof generation. Once launched, this upgrade has the potential to further drive up the price of MATIC.

MATIC price poised for more gains, but caution needed

With a total value locked (TVL) of $1 billion on the Polygon Network, this second-layer scaling solution has found its niche among users of decentralized applications. Importantly, this number has grown from $878 million in the previous month, indicating increasing demand for its processing capabilities.

While it may be premature to predict the timing and potential impact of the proposed Polygon 2.0 upgrade, other competing solutions like Arbirtrum (ARB) and Optimism (OP) are also experiencing growth. Privacy implementations utilizing zero-knowledge proofs may also capture significant market share due to their unique features currently unmatched by the Polygon Network.

In essence, there are no apparent obstacles preventing MATIC from reclaiming the $0.90 support level observed prior to the SEC's action against Coinbase on June 6. However, investors will likely await further development confirmation before expecting a more consistent bullish momentum for MATIC.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Price analysis 5/1: SPX, DXY, BTC, ETH, BNB, XRP, ADA, MATIC, DOGE, SOL

May 1, 2023 Coin Telegraph

ADA price

Bitcoin and most major altcoins are witnessing aggressive selling at higher levels, indicating that the bears are trying to make a comeback.

JPMorgan Chase emerged as the winner in the auction to acquire the deposits and a “substantial majority of assets” of the troubled bank First Republic. This marked the failure of the third regional bank in the United States since March and laid open the vulnerabilities in the legacy banking system.

Meanwhile, Bitcoin (BTC) has risen for four consecutive months from January through April, a feat it last achieved in 2013. Will the recovery extend in May?

Historical data does not give a clear advantage either to the bulls or the bears in May. The performance is split right in the middle with five positive and five negative monthly closes in May, according to Coinglass data.

*Daily cryptocurrency market performance. Source:* *Coin360*

The recovery in Bitcoin is facing a stiff hurdle above $30,000, indicating that the bulls are wary of buying at higher levels. That could be because of the upcoming Fed’s meeting on May 2 and 3, which is known to cause an increase in short-term volatility.

What are the levels that the bulls need to defend on Bitcoin and select altcoins if they want to keep the chances alive for the continuation of the up-move? Let’s study the charts of the top-10 cryptocurrencies to find out.

S&P 500 index price analysis

The S&P 500 index (SPX) bounced off the 50-day simple moving average (4,035) on April 26 and has reached the overhead resistance of 4,200 on May 1.

The bears are expected to mount a strong defense in the zone between 4,200 and 4,325. If the price turns down from the overhead zone but does not fall below the moving averages, it will suggest that the sentiment is turning positive and traders are buying the dips.

That will increase the likelihood of a break above 4,325. If that happens, the index could accelerate toward 4,500 and then 4,650.

If bears want to gain the upper hand, they will have to quickly yank the price below the 50-day SMA. That could sink the index to the uptrend line.

U.S. dollar index price analysis

After trading between the 100.82 support and the 20-day exponential moving average (101.93) for the past few days, the U.S. dollar index (DXY) is trying to break out of the range.

The relative strength index (RSI) has been gradually rising toward the center, indicating that the selling pressure is reducing. If buyers sustain the price above the 20-day EMA, the index could rally to the 50-day SMA (103.05).

Such a move will suggest that the index may extend its stay inside the 100.82 to 106 range for a few more days.

If bears want to strengthen their position further, they will have to tug the price below 100.82. That will complete a bearish head and shoulders pattern, starting a possible downtrend toward 97.50.

Bitcoin price analysis

The long wick on Bitcoin’s April 30 candlestick shows that the bears are aggressively defending the overhead resistance at $30,000.

*BTC/USDT daily chart. Source: TradingView*

The price turned down and slumped on May 1 but a minor positive is that the bulls are fiercely protecting the 50-day SMA ($28,146). This suggests that the BTC/USDT pair may swing between $26,942 and $30,000 for a while.

Usually, a tight-range trading is followed by a range expansion. If the price continues lower and plunges below $26,942, the pair may decline to the crucial support at $25,250.

On the contrary, if the range expands above $30,000, the pair is likely to rise to $31,000 and thereafter to $32,400. A break above this level will signal a pick-up in momentum.

Ethereum price analysis

The bulls are struggling to push and sustain the price above the 20-day EMA ($1,896), indicating that the bears are trying to flip this level into resistance.

*ETH/USDT daily chart. Source: TradingView*

The 20-day EMA has started to turn down gradually and the RSI has dipped below 45, indicating that bears have a slight edge. If bears sink and sustain the price below $1,785, the ETH/USDT pair could drop to the 61.8% Fibonacci retracement level of $1,663.

Contrary to this assumption, if the price turns up from the current level, the bulls will again try to propel the pair above the psychological level of $2,000. If they succeed, the pair can rally to the stiff overhead resistance of $2,200.

BNB price analysis

BNB (BNB) rebounded off the 50-day SMA ($323) on April 30, indicating that the bulls continue to guard this level with full force.

*BNB/USDT daily chart. Source: TradingView*

The price action of the past few days has formed a symmetrical triangle pattern, indicating indecision among the buyers and sellers. The 20-day EMA ($328) is sloping up gradually and the RSI is just above the midpoint, indicating a minor advantage to the bulls.

If buyers drive the price above the triangle, it will signal the start of a new up-move. The BNB/USDT pair could then rally to the pattern target of $380 and subsequently to $400.

The bears are likely to have other plans. They will try to sink the pair below the support line of the triangle and deepen the correction to $280.

XRP price analysis

XRP’s (XRP) recovery hit a wall at the 20-day EMA ($0.47) on April 29, which suggests that the sentiment is negative and traders are selling on rallies.

*XRP/USDT daily chart. Source: TradingView*

The bears will try to pull the price to the strong support at $0.43. This is an important level to keep an eye on because if it cracks, the XRP/USDT pair may collapse to the next major support at $0.36.

The first sign of strength will be a break and close above the 20-day EMA. Such a move will suggest that the bears are losing their grip. That could open the doors for a possible rally to the resistance line. If bulls overcome this barrier, the pair could surge toward $0.56.

Cardano price analysis

Buyers are finding it difficult to push Cardano (ADA) above the neckline, indicating that the bears are fiercely protecting the level.

*ADA/USDT daily chart. Source: TradingView*

A minor positive in favor of the bulls is that they have not allowed the price to slip below the 50-day SMA ($0.38). The RSI is in the negative territory and the 20-day EMA ($0.40) is flattening out, indicating that bears are trying to gain the upper hand.

If ADA price plunges below $0.37, the selling could intensify and the ADA/USDT pair may descend to the next support at $0.33.

On the upside, the bulls will have to cross the obstacle at the neckline to set up a retest of $0.46. A break above this level will signal the start of a new uptrend.

Polygon price analysis

Polygon (MATIC) is facing selling by the bears on relief rallies while the bulls are trying to defend the support at $0.94.

*MATIC/USDT daily chart. Source: TradingView*

This tight-range trading is unlikely to continue for long. The downsloping 20-day EMA ($1.03) and the RSI in the negative territory indicate that the path of least resistance is to the downside. If bears tug the price below $0.94, the MATIC/USDT pair could nosedive toward $0.69.

On the contrary, if the price turns up from the current level and breaks above the 20-day EMA, it will suggest the start of a stronger recovery. The pair may then rise to the resistance line where the bulls will again face stiff resistance from the bears.

Dogecoin price analysis

Dogecoin (DOGE) turned down from the 20-day EMA ($0.08) on April 30, indicating that the sentiment is negative and bears are using the rallies to sell.

*DOGE/USDT daily chart. Source: TradingView*

The price has reached the support near $0.08. If this level gives way, it will suggest that bears have seized control. Sellers will then try to build upon their advantage and pull the DOGE/USDT pair to the next support at $0.07. The bulls are expected to defend the zone between $0.07 and $0.06 with all their might.

Contrarily, if the price bounces off the current level and rises above the 20-day EMA, it will suggest that the bulls are accumulating at lower levels. The upside momentum could pick up after buyers pierce the downtrend line. Dogecoin's price may then climb to $0.11.

Solana price analysis

Solana (SOL) turned down from $24 on April 30, indicating that bears are active at higher levels. The price has reached the 50-day SMA ($21.74), which is an important level to keep an eye on.

*SOL/USDT daily chart. Source: TradingView*

The short-term advantage will tilt in favor of the bears if they manage to sink the price below the 50-day SMA. The SOL/USDT pair could then slump to the strong support at $18.70. Buyers are likely to guard this level with force. If the price rebounds off $18.70, the bulls will again try to clear the hurdle at $24.

If they can pull it off, the pair will attempt a rally to $27.12. A downturn from this level may result in rangebound price action between $27.12 and $18.70 for some time. Alternatively, if the bulls catapult the price above $27.12, the next stop could be as high as $39.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

MATIC price eyes 200% gains on Polygon adoption by Instagram, JPMorgan

November 3, 2022 Coin Telegraph

Coin Telegraph

Polygon’s list of high-profile partners is getting longer, with Disney, Starbucks and Robinhood already boarding its blockchain.

Polygon (MATIC) emerged as the best-performing asset among the top-ranking cryptocurrencies on Nov. 3 as the market’s attention turned to the latest Instagram and JPMorgan announcements.

Polygon in high-profile partnerships

Notably, Meta, the parent company of Instagram, named Polygon as its initial partner for its upcoming nonfungible token (NFT) tools that allow users to mint, showcase and sell their digital collectibles on and off the social media platform.

Meanwhile, banking giant JPMorgan used Polygon to conduct its first live trade (worth about $71,000) on a public blockchain, marking a concrete step toward integrating cryptocurrencies into traditional financial frameworks.

MATIC, a utility and staking token within the Polygon blockchain ecosystem, rose over 13% to $0.985 after the announcements, accompanied by an uptick in daily trading volume.

*MATIC/USD daily price chart. Source: TradingView*

MATIC’s upside move came as a part of a broader recovery rally across the crypto sector that started in mid-June. MATIC’s price has rebounded by more than 200%, a trend that will likely sustain in the coming months.

MATIC’s price nears cup-and-handle breakout

The first cue for MATIC’s bullish continuation comes from a classic technical setup.

On the daily chart, MATIC has painted a cup-and-handle setup, which comprises a U-shaped recovery followed by a downward drifting channel. The token is now eyeing a decisive breakout above the pattern’s neckline range (the red bar in the chart below) to reach $2.89, its primary upside target.

*MATIC/USD daily price chart featuring cup-and-handle pattern. Source: TradingView*

As a rule of technical analysis, a cup-and-handle pattern’s target is measured after adding the distance between the cup’s bottom and neckline to the potential breakout point. As a result, MATIC is now eyeing a 200% price rally by the end of Q1 2023.

Fundamentally, MATIC’s demand could keep growing, given Polygon’s growing NFT projects launched by mainstream companies.

For instance, Polygon’s list of prominent NFT partners includes names such as Disney, Robinhood and Starbucks. Furthermore, Polygon had a strong Q3, wherein its number of active wallets reached a record high of 6 million, primarily driven by the launch of Reddit’s NFT marketplace on its blockchain.

*Polygon NFTs had the strongest Q3 performance in 2022. Source: Messari*

On the other hand, macro risks continue to threaten the ongoing crypto market recovery, which may hurt Polygon despite its growing partnerships with big-name brands. That being said, a strong pullback from the cup-and-handle pattern neckline range could invalidate the bullish setup altogether.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Is MATIC price about to double? Polygon’s Reddit hype pushes exchange balance to 9-month lows

October 26, 2022 Coin Telegraph

Berkshire Hathaway

MATIC price could sustain bullish momentum on cues from a mix of optimistic fundamental and technical indicators.

A sharp rebound in the Polygon (MATIC) market in the last four months has increased its price by 200% when measured from its June 2022 bottom of $0.31. And now, the token is showing signs of undergoing another major market rally.

MATIC exchange balance hits nine-month low

Notably, the MATIC supply held by all crypto exchanges fell to 802.15 million on Oct. 26, its lowest level since January 2022. The plunge came as a part of a broader downtrend that has witnessed over 600 million MATIC leaving exchanges in the last four months, data on Santiment shows.

*MATIC balance on exchanges versus price. Source: Santiment*

A declining crypto balance across exchanges is perceived as bullish by the market since traders typically withdraw their funds from trading platforms when they want to hold the tokens long term.

The MATIC chart above shows a similar albeit erratic negative correlation between its price and supply on exchanges. As a result, a period of decline in MATIC reserves at exchanges has historically coincided with an uptrend in price, and vice versa.

Therefore, the latest plunge in MATIC supply across exchanges hints at more upside for the token in the coming weeks.

Reddit using Polygon to mint collectible NFT avatars

More cues for a potential MATIC price rally come from the news of Polygon's adoption by mainstream fintech companies.

Notably, Nubank, a Brazilian neobank bank backed by Warren Buffett's Berkshire Hathaway, picked Polygon to build its native Web3 ecosystem. Since the Oct. 20 announcement, MATIC price has rallied by nearly 12% and was trading for $0.95 as of Oct. 26.

Furthermore, the massive MATIC outflow from exchanges coincides with the soaring trading and sales volume of Reddit nonfungible token (NFT) avatars. These digital collectibles are minted as NFTs on the Polygon blockchain.

*Reddit NFTs sales volumes. Source: Dune Analytics*

From a technical perspective, MATIC has broken out of a bullish continuation pattern, dubbed a bull flag, whose profit target sits almost double the token's current valuation, as shown below.

*MATIC/USD three-day price chart. Source: TradingView*

MATIC also shows similar strength against Bitcoin (BTC), according to a technical setup shared by Kaleo, an independent market analyst.

"The predominate structure is a HTF [higher timeframe] flag dating back to May of '21 that looks ready for another leg higher," the analyst wrote while citing the chart below.

*MATIC/BTC daily price chart. Source: TradingView*

"I'm expecting a small retrace before breaking out / continuing higher," he added.

The MATIC/BTC setup could propel the pair to 0.000065 BTC by early 2023 versus the current price of 0.0000458 BTC, a 30% price rally.

Warren Buffett-backed neobank picks Polygon for Web3 token — MATIC price eyes 100% rally

October 24, 2022 Coin Telegraph

Blockchain development

MATIC has painted a bull flag setup with a profit target sitting nearly 100% higher than its current price.

The price of Polygon’s MATIC (MATIC) coin could double by the end of 2022 or early 2023 due to a mix of extremely bullish fundamental and technical indicators.

Polygon wins high-profile clients

MATIC rose by nearly 6.5% four days after Nubank, a Brazilian fintech company backed by Warren Buffett’s Berkshire Hathaway and Softbank, confirmed that it selected Polygon’s “Supernets technology” for its blockchain and digital token, dubbed Nucoin.

“Nubank plans to airdrop the digital token to its customers in the first half of 2023,” the official announcement read, adding:

“These tokens will serve as the basis for its customers loyalty rewards program and will have benefits such as discounts and other advantages.”

#Polygon is taking @Nubank from #Web2 ➡️ #Web3!

In a strategic partnership with Polygon, Nubank is launching its own chain using #PolygonSupernets & thus its digital token Nucoin #onPolygon

This move will open the gateway for 70 mn+ Nubank users to the #Web3 space pic.twitter.com/Fu06Vi7IpV
— Polygon - MATIC (@0xPolygon) October 19, 2022

As a result of the rally, MATIC was changing hands for $0.90 on Oct. 24, its highest level in three weeks.

Polygon Supernets is an enterprise-level solution that removes the complexity of blockchain development for companies looking to build their native chains. Interestingly, before Nubank, gaming company GameSwift employed the product to launch its custom blockchain.

The growing demand for Polygon products may bring a similar boom for its native token, MATIC, which serves as a utility and staking asset within the Polygon blockchain ecosystem.

MATIC eyes bull flag breakout

The Nubank news surfaces as MATIC paints what appears to be a bullish continuation pattern on its lower-timeframe chart.

Dubbed a “bull flag,” the pattern emerges when the price consolidates inside a parallel, descending channel after a strong move upward. As a rule, it resolves after the price breaks out of the range to the upside and rises by as much as the previous uptrend’s height.

*MATIC/USD 3-day chart featuring bull flag breakout setup. Source: TradingView*

Therefore, MATIC’s breakout above the flag’s upper trendline could have it test $1.85 as its primary upside target. In other words, it could see a 100% price rally by the end of 2022 or at the beginning of 2023.

Conversely, a pullback from the flag’s upper trendline could lead MATIC toward the lower trendline near $0.67.

Polygon rallies 22% on Disney invitation euphoria — will MATIC price gains swell in July?

July 14, 2022 Coin Telegraph

Altcoin

MATIC still awaits a decisive breakout after the Disney-led intraday rally, with the profit target sitting about 80% higher than current prices.

Polygon (MATIC) reached lofty price levels this July 14, a day after getting selected for the Walt Disney Company's benchmark business development program.

MATIC's price surged 22.5% to $0.657 a token, its highest level in a month. In doing so, the token also climbed above its 50-day exponential moving average (50-day EMA; the red wave), a curvy resistance level that had been capping MATIC's upside attempts since January 2022.

Polygon enters the Disney World

MATIC's move upside appeared synchronous with similar intraday recovery actions witnessed elsewhere in the crypto market.

Nonetheless, Polygon fared better than most of its top-ranking rivals, including the cryptocurrencies Bitcoin (BTC) and Ether (ETH).

And at the core of MATIC's better performance could be the Walt Disney Company.

The multinational mass media and entertainment conglomerate announced six companies that would join its 2022 Disney Accelerator to build augmented reality (AR), nonfungible tokens (NFTs), and artificial intelligence (AI) solutions.

Polygon made it to Walt Disney's list, thus becoming the only blockchain platform to have done so ever. As a result, MATIC, Polygon's native utility and staking token, rallied better than most of its rival digital assets.

HUGE for $MATIC

Every day feels like another prominent Web 2 platform embracing what’s coming, and Polygon is always involved, especially when it comes to NFTs. Excited to see what they cook up https://t.co/MDNBkivZDd
— N03LVentures (@N03LVentures) July 13, 2022

Key MATIC R/S flip ahead

Polygon now tests a resistance confluence, defined by a support-turned-resistance range of $0.61-0.67 and a Fibonacci retracement line near $0.63, for a potential breakout in July.

A decisive move above the confluence could have MATIC pursue a run-up toward the 0.618 Fib line near $1.11, providing the token also closes above its 50-3D (red) and 200-3D (blue) EMAs. That would mean almost an 80% jump from today's price level.

#MATIC IS READY FOR A +80% PUMP.

Bullish Ascending Triangle. $MATIC #CRYPTO #BTC pic.twitter.com/I3g1x98T2u
— TAnalyst (@AurelienOhayon) July 14, 2022

Conversely, a pullback from the confluence would risk crashing MATIC toward the $0.29-$0.35 area, similar to how it retraced downward in June.

MATIC could also erase its recent gains due to higher inflation. Notably, the crypto markets like their traditional finance counterparts have responded negatively to a persistently rising U.S. consumer price index.

*MATIC/USD and NASDAQ weekly correlation coefficient. Source: TradingView*

On July 13, the latest inflation data reached its four-decade high of 9.1%. As a result, investors anticipate the Federal Reserve would raise benchmark rates by a full percentage point, with Atlanta Fed President Raphael Bostic saying that the option "is in play."

A 1% rate hike in July would risk putting downward pressure on the entire crypto market, including Polygon.

Polygon price jumps 60% in four days amid ‘pretty big’ MATIC accumulation

June 23, 2022 Coin Telegraph

Altcoin

MATIC price now eyes a 20% price rally as it undergoes an inverse head and shoulders breakout.

Polygon (MATIC) took a break from its prevailing bearish course, posting one of sharpest rebound in the crypto market this week.

Notably, MATIC's price has risen to $0.50 this June 23, four days after hitting $0.317, its lowest level since April 2021. This amounts to roughly a 60% gain, surpassing the performances of even Bitcoin (BTC) and Ether (ETH) in the same timeframe.

Nevertheless, MATIC is still down significantly from its December 2021 high of $2.92, coinciding with the overall crypto bear market and a hawkish Fed putting pressure on risk-on assets.

MATIC "in a pretty big accumulation"

Meanwhile, some of its richest investors have been accumulating MATIC tokens despite the general downtrend, on-chain data suggests.

Notably, the so-called MATIC sharks and whales have been in accumulation, according to data provided by Santiment. That includes the tiers of Polygon token holders ranging from 10,000 to 10 million coins, which have "collectively added 8.7% more to their bags" since May 9.

$MATIC sharks and whales have been in a pretty big accumulation trend for about six weeks. The tiers of holders ranging from 10k to 10m coins held have collectively added 8.7% more to their bags in this timespan. https://t.co/oasCn72rxt pic.twitter.com/lm4au2fWkn
— Santiment (@santimentfeed) June 22, 2022

Interestingly, MATIC's price has fallen by 50% in the same period, underscoring that many whales are confident about its long-term recovery.

Inverse head and shoulders

From a technical point of view, MATIC/USD appears to be heading toward a new multi-week high.

In detail, the Polygon token has been breaking out of its "inverse head and shoulders," or IH&S pattern, since June 22. IH&S is a bullish reversal setup that forms after the price forms three troughs in a row while hanging upside down by a common support line called the "neckline."

Also, an IH&S's middle trough (the head) is deeper than the other two, called right and left shoulders, respectively. Ultimately, the setup resolves after the price breaks above the neckline, and, as a rule of technical analysis, rises by as much as the distance between the head and the neckline.

*MATIC/USD four-hour price chart. Source: TradingView*

As a result of its IH&S pattern, MATIC's price could rally toward $0.60 in June or early July, up about 20% from today.

Caution for MATIC bulls

Whale buying is not necessarily a bullish signal, and the IH&S pattern has a failure rate of 16.5%. So, a further price rally could also prompt whales to flip MATIC for a quick profit, given the tight conditions elsewhere in the cryptocurrency and traditional markets that could result in false recovery signals.

Additionally, the MATIC balance across all the crypto exchanges has jumped from 1.21 billion to 1.37 billion between May 1 and June 23, according to data from CryptoQuant, indicating additional potential sell-pressure in the near term.

*Polygon exchange reserves. Source: CryptoQuant*

Ascending channel pattern sets Polygon (MATIC) up for a potential 30% rally

January 13, 2022 Coin Telegraph

Altcoin

A bullish technical analysis pattern and the potential approval of the EIP-1559 proposal could back MATIC’s attempt to rally to a new all-time high.

Polygon prices look poised to rise by at least 30% in the wake of a key Jan. 18 upgrade that would push a considerable portion of its native MATIC token out of circulation.

Dubbed EIP-1559, the improvement proposal originally came to light as part of Ethereum's so-called London Hard Fork upgrade on Aug. 5. The proposal effectively started destroying, or "burning," a part of the fees paid to miners via Ether (ETH).

Traders and investors raised their bids for Ether before and after the EIP-1559 upgrade, noting that it made Ether a deflationary asset for the first time in history. For example, a model created by Ethereum co-founder Justin Drake claimed that EIP-1559 would reduce Ether's annual supply by 1.6 million ETH.

MATIC looks for new record highs

Polygon, which acts as a layer-2 protocol built to scale Ethereum's prevailing scalability issues, rolled out a testing implementation of EIP-1559 on Dec. 14, 2021. After the test net launch, MATIC price rallied by almost 30% to $2.35, which includes a brief run-up to its record high near $3.

In theory, a lower supply against a rising demand would make the asset more valuable in the eyes of its bidder.

This classic economic reference has assisted in boosting demand for cryptocurrencies like Bitcoin (BTC) before. Issuance would be halved every four years against a limited supply cap of 21 million units. This begs the question, could the MATIC price rally in the same way? Mineplex co-founder Alexander Mamasidikov thinks yes.

Mamasidikov told Cointelegraph that EIP-1559 would impact MATIC price positively, adding that it could easily rally toward its current record high following the technical upgrade.

"In periods of price recovery, investors are often on the lookout for both technical and fundamental features to hang onto in order to back a coin, and Polygon brandishes both," he said, adding:

"While Polygon remains a better version of Ethereum in terms of lower transaction costs, it is also the delight of retail investors with respect to its low price at this time when compared with Ethereum or other smart contract networks."

What do Polygon's technicals say?

MATIC has been trending higher inside an ascending channel pattern since July 2021, confirmed by at least two reactive highs and two reactive lows.

The token recently retested the channel's lower trendline around $1.89 as support, a move that was followed up with a bullish retracement toward $2.50. It now acting as resistance and the $2.50 level also turned out to be near the 1.00 Fib line near $2.44.

*MATIC/USD daily price chart featuring ascending channel pattern. Source: TradingView*

That being said, MATIC may attempt a break above the $2.44-resistance around the EIP-1559 upgrade on Jan. 18. The move would set itself on a course to test its interim upside target near $3, which is approximately a 30% jump.

Meanwhile, if the EIP-1559 factor plays out any longer than anticipated, MATIC price may even attempt an extended run-up toward the 1.618 Fib line around $3.52. Conversely, a rejection at $2.44 could have Polygon retest the ascending channel support for a negative breakout.

Such a move would risk invalidating the bullish setup, as discussed above. All of this is in conjunction with exposing MATIC to a correction toward $1.77 or lower.

Polygon can hit $3.50 in Q4 as MATIC’s 20% weekly rally triggers bull flag setup

October 15, 2021 Coin Telegraph

Polygon can hit .50 in Q4 as MATIC’s 20% weekly rally triggers bull flag setup

Altcoin

MATIC retested the bull flag’s upper trendline as resistance Friday after its price rose by up to 30%.

Polygon (MATIC) has the potential to reach $3.50 by the end of this year as it charts a pattern that’s starting to resemble a bull flag.

In detail, bull flags are bullish continuation patterns that emerge when the price consolidates following a strong move higher. In doing so, the price tends to trend lower while leaving behind a sequence of higher lows and lower lows.

A breakout occurs when the price closes above the flag’s upper trendline (or resistance). In other words, the price can rise by as much as the height of the previous uptrend, also known as a flagpole.

It appears MATIC has been painting a similar pattern even since it established a record high of $2.89 on May 17, following a $2-long upside run (the flagpole).

*MATIC/USD weekly price chart featuring bull flag setup. Source: TradingView*

As a result, should MATIC’s price break above the flag’s resistance decisively, it will shift its upside target to about $2 above the breakout level. That would roughly put the Polygon token en route to $3.50.

The pullback angle

The bullish setup appeared as MATIC surged by around 30% on Friday to reach a one-month high near $1.65.

Nonetheless, the cryptocurrency experienced a slight correction near the said peak level, dropping by around 4% on profit-taking sentiment among daytraders. Moreover, since the correction occurred right around the bull flag resistance, it raised the possibility of extended selloffs ahead.

Should a pullback happen, it will risk dropping MATIC to its first line of weekly support toward its 20-week exponential moving average (20-week EMA; the green wave) around $1.231. Meanwhile, further weakness could shift the downside target to the 50-week EMA (the velvet wave) around $0.868.

Bulls have the upper hand

In addition to the full flag, MATIC painted a cup-and-handle pattern that presented the possibility of the cryptocurrency hitting $1.80 soon.

Twitterati MK2 Trading spotted the bullish reversal indicator first on the Polygon token’s daily price chart. It showed the price forming a rounding bottom (cup) following an upside move and then painting a descending channel range (handle).

A subsequent breakout from the handle’s trading range would signal a bullish continuation. In doing so, the price would eye a run-up toward the level at a length equal to the cup’s depth. As a result, MK2 Trading expects MATIC at $1.80 in the coming sessions.

Macro fundamentals

The latest bout of buying in the Polygon market appeared after Upbit, one of the leading South Korean crypto exchanges by volume, added MATIC pairs to its trading platform. Additionally, the exchange also listed Solana (SOL) and NuCypher (NU) pairs.

Solana was another standout performer on Friday, with its native token, SOL, surging by over 11.5%, while NuCypher’s NU rallied by more than 845% Friday after Upbit’s announcement.

Polygon eyes record high as MATIC’s 150% price rally activates textbook bullish pattern

August 20, 2021 Coin Telegraph

Coin Telegraph

Polygon's native asset, MATIC, tests its June resistance level near $1.51 for a bullish breakout setup.

A recent price rally in the Polygon (MATIC) market pushed its prices above $1.56 for the first time in more than two months.

In detail, the MATIC/USDT exchange rate rose 20.65% in just two days to reclaim the June 17 high. Traders raised their bids for the pair after Polygon announced that it would create a decentralized autonomous organization (DAO) for its community members while focusing specifically on the booming decentralized finance (DeFi) space.

Polygon, which offers layer-2 scaling solutions to Ethereum projects, allocated $100 million for the DAO creation — and also to bring DeFi projects into its interoperability pool. The team also announced that it would airdrop new DAO governance tokens atop existing Polygon users, i.e., free tokens for people who hold MATIC.

The solid interim fundamentals pushed MATIC demand among speculators higher, leading to a price rally in the past two days. Meanwhile, the upside move also activated a classic bullish setup that promises to send MATIC prices to a new record high.

Breakout awaited

Dubbed as inverse head and shoulders, the pattern is a common bullish reversal indicator that one confirms after the price makes three troughs in a row below a resistance-like neckline. In doing so, the middle trough (head) appears to be deeper than the other two (shoulders), which are more or less of equal height when measured from the neckline.

Technical chartists typically enter a long position when the price moves above the neckline, with the pattern's maximum height plus the breakout level serving as their ultimate profit target. Their stop loss is commonly at the low point of the right shoulder.

Applying the textbook definitions on the MATIC/USDT three-day chart shows the pair forming an inverse head and shoulder pattern.

*Polygon (MATIC/USDT) three-day chart with the inverse head and shoulders setup. Source: TradingView.com*

On Aug. 20, the Polygon token inched above the neckline resistance of $1.51 following a 150% price rally measured from the June 18 low of $0.62 (head). Therefore, the maximum height of the inverse head and shoulders pattern came out to be $0.89.

As a result, should the MATIC/USDT rate break above $1.51, accompanied by a spike in trading volume, the pair will increase its likelihood of rising by $0.89. In doing so, it would eye $2.40 as its inverse head and shoulders profit target, just $0.30 below its current record high.

Bearish setup

If Polygon bulls fail to reclaim $1.51 as support, its prices could retreat back to the next line of support near $1.35.

*MATIC/USDT 3-day candle chart. Source: TradingView.com*

An additional breakdown would expose MATIC/USDT to $1.09, a reliable support level in recent history.

MATIC Price