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Polygon [MATIC] is on the verge of a major breakout; Nears the $3 mark

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Polygon [MATIC] was seen inching close to its previous all-time high [ATH] at $2.43 around mid-day on 7th December 2021. It started off with an explosive week, rising by almost 37%, as the native token outperformed several top-ranking cryptocurrencies in the weekly index. As the crypto market began recovering from last Saturday’s brutal crash, MATIC bounced back significantly, rising by more than 48% in a span of just 72 hours. This, in turn, fuelled hope for a rally in the coin’s price movement.

Amidst increasing volatility in the broader market, the MATIC token has managed to maintain a steady uptrend especially after the digital asset product issuer, 21Shares announced the listing of a product based on the performance of the cryptocurrency on Euronext exchanges across Paris and Amsterdam. The above developments seemed to have aided in the coin’s price action.

At the time of writing, the asset’s value is changing hands at $2.3, with an intraday trading volume of $5.14 billion. MATIC climbed by an impressive 32% in the last 24 hours. The 15th ranked token has a current market cap of a whopping $16.40 billion.

Polygon [MATIC] – A brief technical analysis

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As indicated from the above daily chart, the Parabolic SAR indicator was cushioning the price candles from a further market downturn. In a similar manner, the MACD indicator was also signaling a bullish movement in MATIC’s price. In terms of trading activity, the Relative Strength Index [RSI] indicator was climbing above the half-line depicting the domination of the buyers in the market. In brief, the asset is poised for upward price momentum.

Coming to its on-chain activity, as per a report by blockchain development platform Alchemy, more than 3,000 apps are currently deployed on the Polygon ecosystem. Earlier in July this year, the layer two protocol had launched a $100 million fund for projects aimed at incorporating blockchain technology into the gaming sector. Alexandre Lores, an analyst at Quantum Economics said,

“This made Polygon a step ahead of the rest of crypto in gaming.”

Polygon [MATIC] rise by 54% in less than a week; More details

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Polygon [MATIC] has risen by 54% in a span of just five days and is only 6% short of its previously established peak at $2.45 in April, this year. As per data on the coinmarketcap, the native token had recorded a low of $1.04 on September 22, and over the past few months, the price has been in a steady upswing, driving MATIC above the $2 mark as December dawned. 

At the time of writing, the asset’s value had since retraced back from its recent high of $2.38, trading at $1.97 with a 24-hour trading volume of $5.32 billion. MATIC was down by 13.11% in the last 24 hours. The 16th ranked coin has a current market cap of $13.5 billion.

Polygon [MATIC] – A brief technical and on-chain analysis

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As indicated from the above daily chart, the Relative Strength Index [RSI] has bounced back from the overbought zone but managed to hold above the 50-median line, which depicts the buyers are in control. The Chaikin Money Flow [CMF] hovering above the zero line is signaling a rise in the capital inflow of the coin market. Riding along a similar trajectory, the green candles of the Awesome Oscillator [AO] are leaning towards the bullish thesis.

The layer 2 solution has seen tremendous on-chain and network traction of late amidst a meltdown in the broader cryptocurrency market. One of the key drivers behind its price surge has been the addition of new protocols to Polygon’s ecosystem, project launches, and a host of cross-chain migrations.

Earlier on 1st December, IDEX announced that it would be launching v3 of its exchange, making it the first hybrid liquidity DEX on the Polygon network. Apart from that, the altcoin has seen many high-profile launches ranging from NFT projects such as the OpenBiSea NFT marketplace to gaming/DeFi platforms like Rainmaker Games, Harvest Finance, and Jarvis Network.

Polygon [MATIC] price rose by 14% in 24 hours: heading for a new ATH?

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Polygon’s [MATIC] price is rapidly surging by 14.04% in a span of 24 hours at the time of writing. The Ethereum based scalability solution has seen an upside rally amidst a global price correction in the market. Market speculators are of the opinion that an unanticipated Binance listing spree might have initiated a rally in the altcoin market.

As a matter of fact, Binance listed PlayDapp [PLA], a crypto gaming platform that is built on and utilizes both the Ethereum [ETH] and Polygon networks to host a growing array of cross-platform interoperable games, and this might have caused the recent uptick in the MATIC’s price.

As per the project website, PlayDapp aims to provide digital assets accessible to general users.

“PlayDapp wants to [turn] non-crypto game users into blockchain game users through the PlayDapp service platform. To do so, PlayDapp provides [Polygon] solutions to play games without cryptocurrency.

Last week, prominent cryptocurrency exchange platform Crypto.com announced the completion of its integration with the layer two network, Polygon. This in return, facilitated users the option to carry out Ethereum deposits and withdrawals through the network. In this context, Polygon has proven to be highly successful, with the protocol supporting over 3,000 dApps and a whopping $4.73 billion in total value locked [TVL]. All these positive developments have acted as a catalyst in the MATIC price movement. 

Polygon [MATIC] price technicals

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Polygon [MATIC] price rose by 14% in 24 hours: heading for a new ATH? 4

At the time of writing, MATIC was trading at $1.77. The asset’s market cap was found to be at $12.39 billion while its 24-hour trading volume stood at $1.43 billion.

As indicated from the above 1-day chart, the Relative Strength Index [RSI] has managed to hold above the 50-median line, depicting the domination of the buyers. The Chaikin Money Flow [CMF] hovering below the zero line is indicating the capital outflow is increasing but that might change in the near term. On the other hand, the Awesome Oscillator’s [AO] is leaning towards the bull.

Polygon [MATIC] sees yet another successful migration from Ethereum

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Polygon has announced the successful integration of Enegra, an equity-backed digital asset investment firm, under the security code EGX in its network. In addition to that, the initial tokenization and the merge were facilitated by Tokeny Solutions, a firm specializing in digital asset transferability and compliance infrastructure. The latest deployment from Ethereum [ETH] to Polygon’s blockchain was enabled due to the latter’s near-zero transaction fees and faster transaction time. Revealing more on the latest developments, its official Twitter handle stated,

Enegra group is coming to Polygon, all thanks to TokenySolutions. Enegra is one of the world’s first regulated companies to issue equity-backed digital security tokens, under security token code EGX on the Polygon network. Enegra, a $28 Billion company, has migrated its security tokens from Ethereum to Polygon. With the migration, end-users will now benefit from fast transfers of security tokens with low or near-zero transaction fees on Polygon.

Commenting on the same, Polygon’s Co-founder, Sandeep Nailwal, said that the tokenization of real-world assets and traditional financial securities might be ‘the next big wave’ in the DeFi ecosystem. Its partnership with Tokeny Solutions has further boosted the network in terms of onboarding qualitative and compliant assets to the layer-2 network. He further added that by utilizing Polygon’s infrastructure with a suitable software provider, such as Tokeny, businesses can effectively deploy or transfer their assets to its network.

Polygon, a layer 2 solution designed to bring scalability and mass adoption to the Ethereum blockchain, has witnessed tremendous on-chain activity in its network over the past couple of months.

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Analyst Raphael observed that MATIC’s bridged net inflows have increased 5x with revenues hitting all-time highs over the past weekend. In the last few days alone, more than $480 million was bridged into the network, thereby registering a record high of 40.25%.

Polygon [MATIC] price analysis

On the price front, MATIC has been struggling to maintain positive momentum. As the broader market, led by Bitcoin [BTC] faced a mild pullback, the ripple effect was also seen in MATIC’s price structure as well.

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The native token registered a weekly decline of almost 6%. At the time of writing, it was exchanging hands at $1.84 following a slump of 3.50% over the past day. The asset recorded a 24-hour trading volume of $772 million as it stood at a market cap of $12.51 billion. As for the technical aspects, the Awesome Oscillator [AO] leaned towards a bearish momentum. The Klinger Oscillator [KO] also depicted a bearish trend indicating that the price could retrace back to the support area. Despite the negative undertone, the Relative Strength Index [RSI] has managed to hold above the 50-median line meaning buyers are still in control.

Polygon (MATIC) nears all-time high, unable to re-test support levels

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Polygon (MATIC) token has acquired a bullish overtone and is now trying to re-enter the $2 price levels. Being a little more than 25% away from its all-time high, Polygon is currently trying to break through the resistance present at the $1.98 price level.

In the last 90 days, the token has reached a high of $2.22 and a low of $1.01, proving to be an excellent investment. The monthly candle for October closed at $1.93, marking a price surge of more than 70%. However, the starting of November hasn’t been particularly bullish for Polygon as compared to 1st October, when the token rose by more than 12%.

The data from CoinmarketCap shows that the 24-hour trading volume of the token dropped by 9.10%, while the market cap currently stands at $12.9 billion.

Polygon price analysis on the daily chart using technical indicators

According to the technical indicators on the daily chart, the Polygon price analysis has been moving sideways in the short term, followed by a 21% price surge experienced on 28th October. With the prices moving up, the momentum is still above the 50-day and 100-day Moving Averages.

Furthermore, following a breakout from the upper end of the Bollinger Bands, the Polygon token (MATIC) is resting near the upper end. This indicates a bullish trend in the short term.

Polygon price analysis
Polygon price analysis on the daily chart by TradingView

On the other hand, the RSI line has above the 60-level but below 70. This could further suggest that the buying pressure is prevailing as the token remains bullish in the short term.

The MACD indicator shows that the MACD line and the signal line are coming close, and if the blue line drops below after the intersection, a bearish divergence will occur. This generally means that lower prices will transpire in the short term.

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Polygon price analysis on the daily chart by TradingView

Final Verdict

The final verdict from TronWeekly suggests that the current momentum for the token is bullish in the long term and new all-time highs are near. Although the current momentum is sluggish, higher prices are certainly possible.

Polygon [MATIC] poised to attain new heights; Here’s why

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Polygon [MATIC] has attracted significant traction over the past few months and has managed to overshadow the Ethereum [ETH] network. In the latest development, Polygon has reportedly registered a whopping $188 million in overall net inflows and 423k daily active addresses count over the last seven days. This was observed by prominent cryptocurrency analyst Raphael who stated that key metrics such as Daily Active Users or Addresses [DAU], Transaction cost [Tx], Daily Bridged Users have noted interesting trends. In his Twitter post, the analyst stated,

MATIC saw ~$188mm net inflows & 423k daily active addresses last week DAU: 423k (-6.01%) Tx/day: 3.3mm (-15.75%) Rev/day: $42k (+20.62%) Cost/tx: $0.012 (+43.17%) Daily Bridged Users (net): +3,119 Weekly Value Bridged (net): $188mm Analysis (including bridge metrics)

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What does Polygon’s metrics indicate?

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In terms of the Daily Active Users [DAU] count, MATIC has clocked in an impressive increase of 116% over the period of 28 days. However, on a week-to-week basis, the charts depicted that the users have declined by 6%. That being said, the “new normal” has increased considerably as indicated in the above chart.

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In order to delve deeper, the analyst also compared Polygon’s daily active address with the second largest crypto asset, Ethereum [ETH], and noticed that the former has comparatively performed better as depicted in the weekly figures with respect to ETH. Raphael stated,

Users as % of Ethereum:

Week 39: 99.2%

Week 40: 84.57%

Week 41: 83.14%

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With respect to transaction count, the prominent analyst, however, added a note of caution by revealing that the increased gas fees induced a negative impact on the transaction as well as transaction costs. As gauged from the above chart, on-chain transactions witnessed a sharp decline of 15.75% in a span of a week.

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Further on some monetization metrics, Polygon has substantially increased its revenues both in terms of USD and MATIC over the last week. The daily revenues looked promising. In terms of MATIC, the revenue figure was up by approximately 16% and now stood at $32k. On the other hand, with USD, the revenues increased by more than 20% over the same period of time and were found to be at $42.3k. The findings also stated that the uptick in the revenues is the result of rising transaction fees and the token’s price rise.

Polygon’s high-profile partnerships

The Polygon’s growth has been commendable. For the first time ever, the second-layer officially smashed past Binance Smart chain [BSC] in terms of total wallets while simultaneously surpassing the 100 million wallet mark and subsequently establishing a new ATH.

The growing demand and activity can be attributed to several high-profile partnerships of the ecosystem in recent times. Ernst & Young’s integration with Polygon protocol among others is one such example.

Are DeFi assets now the neglected child of crypto markets?

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Bitcoin’s [BTC] upward strides have had little or no effect on the decentralized finance realm. DeFi witnessed some serious fluctuation as bearish sentiment was overwhelmed the market. According to the latest report by Delphi Digital, decentralized finance [DeFi] assets have turned into “the neglected child of crypto markets.”

The beginning of the year saw DeFi extend its 2020 summer success as part of the wider bull run. However, as the latter turned sour, DeFi followed suit as well. On the other hand, the crypto market’s recovery failed to catapult the decentralized finance realm.

On a similar note, Delphi Digital also observed that DeFi’s significant run-down, after a strong rally into the year, when valued against Ethereum [ETH]. Spot volume on crypto exchanges Binance, FTX, and Coinbase has nearly doubled since the end of September. Recent data resurgence of activity in spot markets inspires some confidence.

Its tweet regarding the same read,

“DeFi assets are now the neglected child of crypto markets. After a strong rally into the year, DeFi has gotten battered when priced against ETH. And this is after taking ETH’s 60% drawdown in May into consideration.”

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Are DeFi assets now the neglected child of crypto markets? 18

DeFi’s rescue – A ray of hope?

Despite the gloomy picture. Ethereum’s resurgence might come to the rescue. According to the latest data exhibited by DeFiLlama, the Total Value Locked [TVL] in decentralized finance has reached an all-time high of a whopping $204 billion after shedding significantly over the last month. To put things into perspective, the levels these high were last seen in the first week of September.

The latest trend can be attributed to the rise of prominent Lending platforms and decentralized exchanges [DEXs]. These two cohorts of applications continue to remain the most dominant factors catalyzing volumes for decentralized finance infrastructures across all chains. However, DEXs hold a higher position and are currently witnessing more participation and activity than Lending.

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At the moment, decentralized exchanges based on Ethereum have been soaring. Even though Lending enjoyed traction, DEXs are still winning and attracting more inflows into the network, as depicted by Coin98 data.

Data on Binance Smart Chain [BSC] also echoed a similar sentiment where DEXs amassed well over 60% market share with respect to TVL. Polygon’s DEX also accounted for more than half of its entire TVL. This was true for the Solana network as well where decentralized exchange accounted for more than 70% of all the value.

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Are DeFi assets now the neglected child of crypto markets? 19

Polygon [MATIC] ready for a big move to the upside, but critical resistances may block rally

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Polygon [MATIC] has emerged as quite the performer in the crypto market lately. In fact, MATIC was one of the few assets that managed to reverse its losses from the weekend sell-off. Over the past seven days, the crypto was up by more than 5%.

After piercing through a crucial resistance level, MATIC appeared to have entered a period of consolidation. Despite an uptick in volatility, the technicals depict that troubles aren’t over yet.

Over the past day, Polygon [MATIC] rose by 7.50% which pushed its price to $1.45. The crypto asset registered a market cap of $9.73 billion and a 24-hour trading volume of $1.44 billion, at the time of writing.

Polygon [MATIC] Daily Price Chart:

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Polygon [MATIC] ready for a big move to the upside, but critical resistances may block rally 22

After intense profit-taking on the 7th and 8th of September, the MATIC price candles dodged the attempts of the upsloping 50 DMA [Pink] to surge past. On the other hand, the gauge between the 100 DMA [Blue] and the 200 DMA [Yellow] appeared to be on a decline which could pose a threat to the mild uptrend initiated by the bulls.

The volume was low, hence the upward move could be hampered by the multiple resistances that stand in the way of the bullish target.

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Polygon [MATIC] ready for a big move to the upside, but critical resistances may block rally 23

Despite the rise, the dotted markers of the Parabolic SAR were aligned above the candlestick arrangement resisting and current positive price movement. The MACD, however, geared up for a potential bullish crossover in the near term depicting a rise in demand for MATIC. A similar sentiment was demonstrated by the Relative Strength Index [RSI] which moved over the 50-median line after a week indicating a shift in dominance from the sellers to the buyers.

To reclaim the previous highs, Polygon needs to breach the immediate resistance of $1.52 following which the level of $1.74 will come into play. The support level, on the other hand, stood untested at $1.23, and $1.01 respectively.

Tron-based JustSwap attracts more users than Polygon’s DEX QuickSwap

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Tron-based automated liquidity protocol, JustSwap has clocked in more unique active users in its platform than the Polygon-based decentralized exchange, QuickSwap. For the longest time, QuickSwap has held the second position in DappRadar exchange rankings in terms of users.

However, according to the latest chart by the digital analytics firm, JustSwap has managed to “swoop in and replace it.” Over the past 30 days, DappRadar revealed that the Tron-based decentralized trading protocol has drawn almost 200,000 unique users. QuickSwap, on the other hand, saw a little more than a 1% increase in the number of users interacting with its smart contracts.

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Tron-based JustSwap attracts more users than Polygon's DEX QuickSwap 26

Meanwhile, the number of transactions on the Tron-powered platform surged considerably to more than 550,000. This trend was indicative that on average, users conducted approximately 2.8 transactions. It was quite a feat for JustSwap since Polygon has rapidly amassed a lot of users under its hood as it shot to fame this year.

In the past month, JustSwap facilitated more than $300 million through its smart contracts. However, even as the users and the number of transactions rose, the two indicators had little effect on the volume which saw a drop of more than 50%. Besides, Tron-based platforms are becoming rapidly popular. As a matter of fact, three out of the top seven DEXs for the period are Tron-based when ranked by unique active wallets.

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Tron-based JustSwap attracts more users than Polygon's DEX QuickSwap 27

Tron, Ethereum, Polygon, Solana, the list goes on

As Proof-of-Stake [PoS] consensus gained traction, blockchains have also been increasing along with it.

The market for competing blockchains has never been more crowded and complex before. Numerous platforms are now offering variations on the same products, while others have come up with unique offerings. The shift from the dominant Ethereum has been transparent because of its perennial congestion issues and high gas fees. Apart from Tron, there are several other blockchains that have quickly emerged as viable alternatives for the Ethereum network. Some of which are Cardano, Tezos, EOS, Solana, Algorand, NEO, and Avalanche, among others.

MATIC Bulls Dodges a Crack in Support Despite Drop to $1.8

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MATIC, the native token of Polygon, has performed exceptionally well despite another tough week for the cryptocurrency market. The asset accrued weekly gains of 44.29% after defying the general market trend. One of the major drivers of MATIC’s uptrend was Polygon’s rise to prominence with integration with various industry behemoths such as Google Cloud as well as Tech billionaire Mark Cuban’s investment in it.

It had posted a swift recovery after fall to $1.05 on the 23rd of May. The subsequent pullbacks were not as damaging to the coin which maintained its streak above a crucial support point.

After a minor decline of 1.28% over the past 24-hours, MATIC was exchanging hands at $1.87. At the time of writing, the digital asset recorded a market cap of $11.55 billion and a 24-hour trading volume of $3.55 billion.

MATIC Daily Price Chart:

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MATIC Bulls Dodges a Crack in Support Despite Drop to $1.8 30

MATIC’s price has found crucial support. The upsloping moving averages continued to support the price of candles. The 50 DMA’s [Pink] attempt to exceed the candlestick arrangement was cut short by a quick recovery. The 100 DMA [Purple], on the other hand, continued to hover below it indicating that bulls are in control of the market.

The volume has also been moderate could, in fact, push the price the of coin.

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MATIC Bulls Dodges a Crack in Support Despite Drop to $1.8 31

The red closing bars of Awesome Oscillator noted a shift in momentum to the bearish side as the price approached its upper ceiling. The MACD slid down the signal line after sustaining a correction, however, if it manages to complete a bullish crossover, the price could move north of the upper trendline sooner than expected.

Optimism rose as RSI maintained its fort above the 50-median level which depicted a sentiment of increasing buying pressure in the market.

A break below $1.69 could open the doors for a further depreciation all the way down to the 50 DMA at $1.03. On the contrary, if the bulls defend the coin’s current price level support, the MATIC/USD pair may rise to the immediate resistance of $2.20 A breakout of this target level could result in a rally to $2.44.