Polygon’s native token, MATIC, has experienced a robust surge of over 15%. The bullish momentum has propelled the cryptocurrency to levels not seen in five months, nearing a high of $0.86. As market dynamics shift, the Polygon network is poised for further upward movement, with analysts eyeing a potential push toward the coveted $1.00 mark.
A significant catalyst contributing to Polygon’s recent surge is the strategic initiative by Polygon Labs. Polygon’s research and development arm has launched a grant program, signaling its commitment to fostering innovation within its ecosystem.
Polygon Labs is allocating a staggering 110 million MATIC tokens, equivalent to approximately $85 million, to incentivize developers to build applications across various sectors, including decentralized finance (DeFi), gaming, social media, and more.
According to an official announcement from Polygon Labs, later-stage projects can anticipate direct grants of up to 2 million MATIC, valued at $1.55 million. On the other hand, early-stage projects are encouraged to apply for quadratic funding grants, where community members contribute donations that act as votes for project allocation.
The recent surge in MATIC’s price follows a relatively subdued market activity, with the cryptocurrency trading near its highest level since mid-July. Santiment’s analytics platform reports a remarkable 54% increase in Polygon’s market cap over the past three weeks, attributing the rise to a series of altcoin milestones.
Notably, key wallets holding MATIC tokens in the range of 100,000 to 10 million have actively supported this upward trajectory through strategic accumulation over the past two weeks. This accumulation by influential market players underscores confidence in Polygon’s potential for sustained growth.
Polygon (MATIC) Technical Outlook & Resistance Levels
Analyzing the on-chain metrics, the surge in network activity and substantial capital inflows from derivatives market traders emerge as pivotal factors driving MATIC’s ongoing price rally. Despite a temporary dip below the 50% Fib retracement level, with the price oscillating between the $0.6952 swing low and $0.8588 high, the bulls demonstrated resilience by maintaining support above the $0.750 level.
A crucial bullish trend line, supported near $0.77, further reinforces the positive sentiment. This trend line aligns closely with the 61.8% Fib retracement level, creating a formidable support zone. Currently trading above $0.82, MATIC faces immediate resistance near the $0.850 level. An anticipated upside break beyond the $0.880 resistance level could propel the price toward the high expected $1.00 mark.
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