MATIC Surges Significantly in a Month: Bull Run or Trap?
The positive price action of MATIC seems to have emerged as the coin took a huge leap to project itself as the most competitive blockchain to challenge the dominance of the Ethereum blockchain. Polygon has now jumped to multiple levels reaching a much higher level of expectation as it has successfully implemented the Angle protocols borrowing module.
This achievement makes Polygon the second blockchain after Ethereum to successfully implement and support this protocol. The price action can be expected to keep moving upwards as blockchain users and validators would now be considering MATIC as an alternative for the high gas fees of Ethereum. Things could turn real bullish, capable of surpassing even the previous highs of Polygon in case Ethereum faces a delay in implementing its proof of stake transition.
MATIC has now regained $7.4 billion market capitalization and the 12th rank amongst crypto leaders. With just 80% of its token being in circulating supply, MATIC has gained $2.4 billion of market capitalization in the last five days, which accounts for 50% gains in just a week.
Polygon now stands just short of 5% of the circulating market capitalization of the 11th-ranked cryptocurrency, Polkadot. These factors should be positively taken into account for enthusiasts who have already taken advantage of the dip values and those who are still considering holding MATIC in their portfolio.
MATIC Price Analysis
Polygon price action has broken the expectation ceiling of crypto experts as it jumped 200% in just 30 days. While the scenario changed from negative to consolidation in the last few days, the surge of 28% witnessed on July 18 has ensured a victory celebration by MATIC enthusiasts.
Comparing the positive indication of RSI and increased transactional volumes addressed in previous iterations, MATIC shows no sign of profit booking or stopping. MATIC token marked a bullish crossover on MACD indicators on June 22, which hasn’t yet lost any strength. Instead, there seems to be a growing gap between the two curves indicating a buying rally in the short term. RSI has been so strong in the last week that it even jumped to overbought zones without initiating any response from MATIC holders.
Traders are known to sell the tokens often as RSI would enter the overbought zones. The increase in green transactional volumes indicating a positive ending of day trades are much higher than the red ones. It showcases the lesser profit booking and higher demand amongst the buyers.
The 200 Days moving average placed at $1.25 would be the next target of MATIC as it remains just 30% away from its latest traded value of $0.9346. MATIC would require a rally of 175% to reach its January 2022 peak values and just a little more to mark a new all-time high. Will Polygon go up? Read MATIC coin price prediction to get in-depth answers about the future of Polygon (MATIC).
Since the price action marked on July 18, 2022, was above 25% in a single day, there is bound to be some profit booking, but the price action should continue in a positive trajectory.
MATIC will have to fall by more than 15% from its latest value of $0.9331 to indicate weakness in buying sentiment. Holders should realize profits near the possible volatile price action close to the 200 DMA curve as MATIC can make a significant rally from current levels. A few days of double-digit gains would completely erase the % loss witnessed at current levels.
