Is the Polygon (MATIC) Bull Market Back on Track?
Polygon provides tools to enhance the speed and reduce transaction costs on blockchain networks. It was formerly known as Matic Network.
As the name suggests, Polygon has many shapes, sides. The aim is to build a simple framework for interconnected networks. At the center of Polygon is Ethereum (decentralized application). It works as an add-on layer to Ethereum that does not change the original blockchain layer. It helps Ethereum to expand its efficiency, size, security, and usefulness.
MATIC is a cryptocurrency of this network. It is used as the unit of payment within the network. It has many side chains that help Ethereum to increase its size. Moreover, it does all this effectively and affordably.
In short, the architecture of the Polygon is very complex. It has many chains, but at the center of the network, it has SDK or Polygon software development. It builds sidechains and connects them to its main blockchain. The main chain is Proof of Stake (PoS), which helps to validate transactions.
Indeed, it is a complex process, but it impacts the price chart.
At the time of writing this analysis, it is around $1.64. However, it had an ATH of $2.83 in May this year. After that, it has not given a good return. It is consolidating in the range of $0.88 to $2.22.
Interestingly, it has a higher low of $1.06, over the previous support level of 0.90. It has also made a higher high of $2.14. Now it is standing on a support level.
Is it bullish or bearish? Let’s find the answer by analyzing technical tools.
On the daily chart, the RSI is 49, which is stable, but if we combine it with MACD, both are showing bullish momentum.
Though the last daily candlestick is bearish, it is still on the upper half of Bollinger Band. Besides that, BB is showing less volatility in the price chart. The Moving Average line is also bullish. Overall, in our opinion, it is bullish on the daily chart. It will reach the $2.15 level very soon. If it breaks the level, it may go up to $2.80.
It is an excellent time to invest for new investors; it is standing on the support level; if you want to collect more coins in your bag, it is the ideal time to do this as per MATIC predictions.