Polygon (MATIC) Is Up 40% In Just Three Days – Here’s Next
Polygon (MATIC) emerged yesterday (January 26) as one of the best-performing coins among the top altcoins in terms of capitalization, surging nearly 17% to hit an all-time high.
The gains came as the broader crypto market began to rally on Jan. 24. Notably, investors and traders invested over $250 billion in digital assets, sparking a rally for Bitcoin (BTC), Ether (ETH), and many more altcoins.
Top 15 Crypto Performance Last Night | Source: TradingView
Polygon, a secondary scaling solution for the Ethereum blockchain, also benefited from the crypto market rally. The total capitalization of its native token, MATIC, rose from $9.77 billion on Jan. 24 to a peak of $13.58 billion two days later.
Meanwhile, MATIC price has surged from $1.31 to $1.82 over the same period, up almost 40% in just three days.
Fed meeting and executive recruitment
The latest rally in the Polygon market comes ahead of the US Federal Reserve’s (Fed) announcement of a rate hike yesterday afternoon.
Cryptocurrencies in particular have also seen some volatility in recent months amid talk of the US Federal Reserve launching a series of rate hikes to combat inflation. The prospect of a shrinking Fed balance sheet and higher interest rates has also weighed on the stock market.
According to Luca Paolini, strategist at Pictet Asset Management, one might expect that the recent stock market turmoil and the widening rift between Ukraine and Russia have drawn the attention of the NATO alliance and could prompt the Fed to delay its rate hikes loosen.
Polygon has overtaken leading rivals like Bitcoin and Ethereum in terms of intraday profits, and it appears executive recruitment is the main reason behind this.
On Jan. 25, YouTube’s Head of Gaming Ryan Watts left the streaming giant to join Polygon Studios, a gaming company and NFT, backed by the exchange’s $100 million fund.
This news seems to have spurred that on Desire Investors for MATIC, making it outperform other large-cap cryptocurrencies.
Important support levels are determined
The strong bounce has brought MATIC back above the 200-day exponential moving average (200-day EMA; blue wave in the chart below), a level significant for its role in limiting the market’s downtrend.
MATIC/USD daily frame price chart | Source: TradingView
On Jan 25, the bulls attempted to reclaim the 200-day EMA as support almost a week after losing it. The decline around the green wave looks a lot like the price action between July and August of last year when a close above it resulted in a rally over 200%.
The fractal shows strong buy sentiment by traders near the MATIC 200-day EMA.
So, if the price sustains above the support, the probability of continuation of its uptrend is higher. However, the upside momentum is in danger of drying up near the resistance of the MATIC descending trendline as illustrated in the chart above.
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