MATIC Technical Analysis: Investment Driven Bulls Break $2
The Ethereum blockchain experienced congestion after NFT projects, as well as DeFi applications launched on the network. MATIC provided a solution by expanding its Ethereum network. The layer-2 scaling solution reduces the burden on Ethereum's blockchain network.
In the race to fund Web3 initiatives, Sequoia Capital, Tiger Capital, and Softbank have put $450 million into the MATIC network. Its Polygon blockchain acts as an Ethereum scaling solution that is slated to further decentralize by becoming it becomes a Web3 project.
Let us move ahead to read about Polygon technical analysis.
Past Performance of MATIC
The MATIC coin price shows dramatic growth in the past 24 hours with the news of new investments in the Polygon network. The recent bullish engulfing candlestick accounts for a 12% price growth and the resistance trendline breakout. Furthermore, the trend overcomes the selling pressure at $2 and crushes the sellers dominated mindset.
MATIC Technical Analysis
The MATIC coin price action shows 30% growth in the past week resulting in multiple bullish engulfing candlesticks. However, the 200% jump in the trading volume accounts for the recent breakout move.
The crucial Simple Moving Averages (50, 100, and 200) show a bullish alignment in the daily chart as the price breaks above the 200 and 100-day SMA. However, the price struggles to surpass the 50-day SMA.
The Stochastic RSI indicator shows a bearish crossover of the K and D lines in the overbought zone. Thus, the indicator reflects the possibility of a retracement to retest the bullish breakout.
The DMI indicator shows a bullish trend reversal crossover in the DI lines indicating a bullish takeover. However, the fall of ADX reflects a loss in MATIC price trend momentum.
Therefore, the technical indicators align their bullish sentiments and support the possibility of an uptrend above $2.
Upcoming Trend
The MATIC coin price experiences increased buying pressure resulting from the $450 Million investment via various different capital firms. Therefore, the upcoming weeks/month can be extremely bullish for the Polygon.
As the price action suggests, the bull run can face opposition near the $2.15 and $2.5 in the short-term trend. However, traders must not forget about the possibility of a retracement to retest the bullish breakout.
At press time, TradingView gives a 'BUY' signal for the MATIC coin.