- MATIC price has rallied 21% as it broke out of an ascending triangle pattern.
- The buyers need to clear a few more hurdles to realize the 150% rally to $4.32.
- Polygon adoption continues to rally as the CEO highlights the importance of scaling solutions.
MATIC price has breached a crucial resistance barrier and is hovering above it. This recent uptick in buying pressure has triggered a massive bull run for the Layer 2 token. Therefore, investors can expect Polygon to continue its journey.
Polygon and Layer 2s to be relevant
Polygon announced that it received its first Insurer – Tidal Finance. With significant exploits in the DeFi ecosystem, Tidal Finance will help secure the space, which is why it has partnered with Polygon.
The project aims to solve DeFi insurer’s supply and demand problem by “allowing capital leverage as well as additional token incentives to increase capital return.” The announcement of this partnership adds,
This collaboration is aimed to increase safety measures for top quality Polygon projects through Tidal Insurance. Projects need to meet certain criteria in terms of auditing, TVL, and other safety measures. Qualified projects will be awarded with a premium discount offering and MATIC incentives for their coverage providers.
Ethereum price is currently at an all-time high, and the ecosystem around it is bustling with dApps, NFTs and meme coins. However, the two reasons why not many users are complaining about gas fees are due to the London Hardfork and the scaling solutions. Polygon, more commonly known as MATIC, has been a significant help to onboard projects and users to the ETH blockchain, who otherwise would have taken a different route.
As a result, Polygon is positioned at the center of scaling solutions and whatever the future holds for Ethereum. Sandeep Nailwal, the co-founder of Polygon, stated that scaling solutions are essential for the global adoption of Web 3.0 and “the network will need the benefits that the Eth 2.0 upgrade promises to offer.”
He further stated,
However, to scale for a new wave of decentralized applications (DApps), it’s going to take a lot more, and it’s looking like layer-two solutions may be the only answer.
MATIC price embarks on a bull run
MATIC price is currently experiencing a slowdown after rallying nearly 25% on October 28. However, this ascent shattered a crucial resistance barrier at $1.73, which has prevented Polygon from going higher thrice for nearly five months.
This uptrend marks the breakout from the ascending triangle pattern that forecasts 150% gains for MATIC price. However, this advance will not be easy, as the Polygon price is stuck between the $2.07 and $2.21 barriers.
Moreover, the Momentum Reversal Indicator (MRI) has flashed a red ‘one’ sell signal. This technical formation forecasts a one-to-four candlestick correction, which seems to be playing out.
Therefore, MATIC price needs to flip $2.21 into a support level to confirm the start of a new leg-up that not only propels Polygon to its previous all-time high at $2.69 but also sets the stage for a new one at $4.32.
MATIC/USDT 1-day chart
While things are looking up for MATIC price, a failure to slice through $2.21 could knock it down to retest the $1.73 support level. While the buyers can make a comeback here, a breakdown leading to a decisive close below $1.57 will invalidate the bullish thesis.
In this situation, MATIC price could head lower to retest the $1.46.
MATIC continues to march higher with $3 in sight
- MATIC price defies broader market concerns and weaknesses by moving higher and higher.
- Bulls slap away any bears attempting to take control.
- Early evidence of a short-term market top beginning to appear.
MATIC price action has certainly been some of the most dramatic post flash crash. Multiple vigorous attempts by short-sellers to push MATIC lower have all failed and have led to MATIC pushing towards new all-time highs.
MATIC price may have one final push before correcting
MATIC price action, in case you missed it, has gained over 66% from its flash-crash lows. This is a fantastic gain by any standard and one that could continue higher or face a solid but temporary pullback. Options and trade setups exist for bulls and bears.
On the long side of the market, a hypothetical entry would be a buy stop at $2.55, a stop loss at $2.51, and a profit target at $2.69. The entry is based on the breakout above a triple top. A trailing two-box stop would help protect any implied profits.
MATIC/USDT $0.01/3-box Reversal Point and Figure chart
The hypothetical long trade is invalidated if MATIC moves below $2.44.
The short trade idea is a theoretical sell stop order at $2.44, a stop loss at $2.52, and a profit target at $2.12. The entry is based on a sell entry from a Pole Pattern retracement. Additionally, the entry would convert the $0.02/3-box reversal Point and Figure chart into a bear market.
MATIC/USDT $0.02/3-box Reversal Point and Figure chart
This trade is invalidated if the long entry identified above is triggered.
Traders on the short side are more at risk here than the longs. This is due to the proximity of MATIC price to new all-time highs and the persistent, sustained momentum higher in the short-term.
Whales Added 1,899,990 MATIC to Their Holdings in Last 24 Hours
Two of WhaleStats’ top 1,000 Ethereum wallets just bought 900,000 and 999,990 MATIC tokens, respectively.
Two Ethereum whales have added the amount of 1,899,990 MATIC ($4,417,976) in the last 24 hours, according to crypto whale tracker WhaleStats. Two of the largest 1,000 Ethereum wallets tracked by WhaleStats just purchased 900,000 and 999,990 MATIC tokens, or $2,087,999 and $2,329,977 worth, respectively, as Polygon continues to be a top choice among large investors.
🐳 An ETH whale just bought 999,990 $matic ($2,329,977 USD).
Ranked #360 on WhaleStats: https://t.co/62Q8q8a3ZI
Transaction: https://t.co/JOXx2Li4XR#MATIC #ERC20 #DEFI #ETH #whalestats— WhaleStats – the top 1000 Ethereum richlist (@WhaleStats) December 8, 2021
MATIC, the native token of the Polygon blockchain, has risen from Dec. 4 sell-off lows of $1.62 to highs of $2.52 on Dec. 7, a nearly 55% gain.
🐋 An ETH whale just bought 900,000 $matic ($2,087,999 USD).
Ranked #207 on WhaleStats: https://t.co/2do7yJzgy7
Transaction: https://t.co/iVbOjdzivv#MATIC #ERC20 #DEFI #ETH #whalestats— WhaleStats – the top 1000 Ethereum richlist (@WhaleStats) December 8, 2021
MATIC was slightly higher at $2.35 at press time. Aside from the whale buy, the price increase is the result of more users becoming aware of Polygon’s cheaper prices, increased efficiency and scalability. The anticipation for Polygon’s virtual “zk day,” which is set for Dec. 9, is growing. The focus of the event will be on the applications of zk-STARKs and zero-knowledge (ZK) proofs, with Ethereum co-founder Vitalik Buterin expected to speak on the panel.
Polygon is a Layer 2 product that speeds up transactions by working on top of primary blockchains. It focuses on solving the Ethereum network’s scalability issues, which have resulted in congestion and high fees.
Polygon’s MATIC token is currently the 14th largest cryptocurrency with a market cap of $16.6 billion, according to data from CoinMarketCap.
Polygon(MATIC) Price Primed for a Bullish Breakout With 25% Upswing in Couple of Days
The mammoth rally of Polygon in early 2021 is still unprocessed, while the asset is set to create yet another one. The MATIC price rose slowly until it reached $2, coiled up heavily, and was on the verge to hit the important levels at $2.5. These levels could certify the uptrend that would range beyond $3 slicing through the current ATH around $2.8.
The MATIC price rally approaching the ATH within a small stipulated time may reignite the bull run of numerous altcoins. Today, BitTorrent price ranged high breaking the huge downtrend line and heading towards its local resistance. The immense buying pressure raised the price breaking the ‘W-shaped’ pattern in the early trading hours.
One of the popular analyst believes the $3 mark is around the corner and the MATIC price may achieve it very soon.
As per the chart posted by the analyst, the MACD previously made its bullish cross formation at a lower frame each time before. However, currently, the bullish cross formation on every higher low contact on the channel is up with the most recent being in the last week of November. And interestingly, this type of cross signifies the beginning of a new rally.
The uptrend diverging line is based on higher highs and has an upside limit currently between $2.6 to $2.7. And if these levels are tested and cleared successfully, then $3 levels could be imminent which is slightly below the 2.5 FIB retracement levels. Moreover, the MATIC price has been above the support levels along with the 100-day MA in the daily chart since November 16 and 200-day MA since July 20. And based on these MACD levels, a strong 1-month rally may begin very soon.