In the world of cryptocurrencies, partnerships, and strategic investments often make headlines. Recently, Alameda and FTX, two prominent players in the cryptocurrency sphere, have staked a substantial $10 million in Polygon (MATIC). This move has stirred considerable interest and speculation within the crypto community.
The backdrop for this significant investment is the price movement of the MATIC token. Back in September, the MATIC token witnessed a breakout from a descending resistance trendline, marking a promising turn of events. However, this upward momentum was short-lived, as the token failed to reclaim the critical $0.60 horizontal resistance area. Instead, it faced rejection on October 5 and began to slide, eventually reaching close to its yearly low at $0.49.
Strategic Staking
Amidst this price volatility, the bankruptcy estate for the crypto exchange FTX made a strategic move. They staked 5.5 million SOL through Figment, securing a 6.99% Annual Percentage Yield. This move is particularly noteworthy, considering that the estate owns a substantial 56 million SOL, of which 42 million is locked under Alameda’s control.
Moreover, these stakeholders have extended their interest to Polygon by staking 16.7 million MATIC tokens, amounting to $9.6 million. This calculated investment in Polygon is a testament to the potential seen in the project by these experienced market players.
MATIC Price Prediction
Analysts are closely watching the MATIC token’s behavior, specifically the Relative Strength Index (RSI), which is a key momentum indicator. A bullish divergence in the daily RSI was observed just before the breakout. This divergence often signals a trend reversal, potentially leading to bullish movements.
However, the stakes are high. The token must surpass the $0.60 resistance area to validate the breakout, which could potentially drive the price up by 60% to the next significant resistance at $0.85. On the other hand, failure to breach this barrier could lead to a 36% drop in the $0.33 horizontal support area.
Alameda and FTX’s strategic staking in Polygon reflects their confidence in the project’s potential, despite the recent price setbacks faced by MATIC. The cryptocurrency community will be watching eagerly to see how these stakes influence the future of Polygon and MATIC’s price movements.