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TA and Fundamentals Should Send Polygon’s MATIC Back to $2 Quickly


Bullish TA shows Polygon nearing a key trend line break.

Covered:

  • Polygon Close to Breaking 4 Month Trendline
  • Large Players are Polygon Bulls
  • Under the Hood Looks Very Good

Polygon Close to Breaking 4 Month Trendline

After the wild ride of 2021 that saw Polygon ($MATIC) rocket into the top 15, Polygon has slumped in 2022 like the rest of the crypto market. However, with the market pricing in the black macro cloud above, the Polygon chart is showing a bullish reversal which can easily take the MATIC token back above $2.

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Trading View

When looking at the above chart, it is clear Polygon is inching towards breaking out of the downward trendline which has been forming since the beginning of the year. A weekly close above $1.49 would signal a bullish reversal. With strong volume, Polygon could close in quickly on the $2 target.

Polygon is up nearly 10% in the last week, briefly popping above the trendline but pulling back from the price of $1.53 which it briefly wicked up to over the weekend. As we have seen over the span of 2021, Polygon has the ability to pump and sustain its gains very well.

Recommended: How To Use The Polygon Bridge To Save On Gas Fees

Large Players are Polygon Bulls

As an example, the token is only down 50% off its all-time highs, while other tokens ahead of Polygon like Doge, Shiba, and Cardano are much further off their all-time highs. Matic has proven that it is far more than merely an Ethereum sidechain.

Also, considering the likes of Kevin O’Leary having recently announced he is a bag holder and big believer in Polygon, these current Polygon prices will likely not last long. More than O’Leary, Polygon has some of the strongest backers of any crypto asset.

Because Polygon is so well-known and is partnered with so many major players, funds, and entities, it has the potential for very strong buying pressure in a situation where as long as Bitcoin doesn’t puke, a bullish catalyst could kickstart $MATIC out of this trendline and straight up to $2.

Under the Hood Looks Very Good

Under the hood, very good things are happening with Polygon, too. Just last week they announced that liquid staking is soon to launch on Polygon. In short, liquid staking allows a user to access their tokens to use in DeFi while also keeping them staked at the same time. This can unlock major liquidity and spur network usage, rather than having coins just sitting there illiquid.

More than this, Polygon is embracing zero-knowledge proofs and zk-Snarks at a breakneck speed. This is because it will help Polygon with security, privacy, efficiency, and scalability. The embrace of highly complex zk technology shows Polygon is serious about the long-term.

In short, there are a lot of reasons to buy $MATIC; zk-snarks, billionaire sharks, and bullish TA are just a few of those reasons. Because Polygon is a household name, one small catalyst could break the downward trendline and send the token back to all-time highs. Keep an eye out on Polygon in the next month, that is if the macro outlook doesn’t tank everything.

Oh, and even though gas has gone down almost to zero on Ethereum, people are still using Polygon’s smart contracts and network more than Ethereum, even though they could do it on Ethereum for the same cost. That’s a good sign for those who worry about Polygon becoming overshadowed when ETH gas fees are eradicated.

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Credit: Nansen.ai

Recommended: Polygon TVL On Uniswap Skyrockets Overnight. Why?





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