As with almost every other cryptocurrency, Polygon (MATIC) has been on a bearish run throughout 2022. The price of MATIC declined by around 85% since January. It hit as low as $0.35 in June of this year. After finding support in that area, the price started to correct. Initially, it increased by more than 200% during the summer, reaching as high as $1.05 but failing to break resistance there. The price had corrective waves after that, and it hit as low as $0.69 in September. Nonetheless, the overall market sentiment has started to improve, as the price has increased by more than 25% ever since.
Considering the relatively large market capitalization that MATIC has, this increase has made MATIC supporters more bullish. This increase could be attributed to a plethora of factors, both fundamental and technical. Here is what our short-term analysis suggests:
Polygon (MATIC) Technical Analysis
Currently, the price of Polygon (MATIC) is around $0.86, with high volatility in the 1-day chart. The trendline in the 1-day chart is ascending, indicating bullish momentum in this time frame. The new highs, however, are lower than the previous ones, creating an ascending wedge pattern. As the wedge gets narrower, we could expect a breakout in the price of MATIC. Given that the upper trend line of the 1-day chart has already been penetrated in the last 24 hours, we could see the price surge in the coming days.
The long-term chart still remains bearish, however, as MATIC has a long way to go before reversing the long-run trend. Given that Polygon’s all-time high was $2.87, MATIC may not aim for those highs quite soon, considering the bearish nature of the current market and the overall global state of the economy.
Indicators
The fear and greed index shows much less fear than in the previous months, where MATIC recorded a 14-month low back in June of this year. Moreover, greed is yet to take over MATIC traders, and it is unlikely to do so given the state of the market.
The RSI of a 1-day chart has been on the rise recently. It is approaching 70, meaning that the buying pressure has relatively increased. On the plus side, there is still more room before MATIC becomes overbought, meaning that the price could keep increasing in the coming days.
The MACD line of a 1-day chart recently went above the signal line, meaning that the momentum shifted and is now slightly bullish. The lines could easily converge, however, since the buying pressure is still not that high.
The 20-day MA is currently below the price of MATIC, meaning that the trend is now upward. Moreover, the 9-day EMA is also below the price of MATIC, indicating that MATIC could find support naturally if it attempts a retracement.
Polygon (MATIC) Fundamental Analysis
Despite what technical factors suggest, fundamentals are the ones that have really impacted the price of Polygon (MATIC) recently.
First and foremost, the Web 3.0 gaming community has been quite engaged recently as the Polygon ecosystem continues to grow. A recent tweet by Polygon’s co-founder Sandeep Nailwal suggests that Polygon is now the biggest gaming blockchain in the crypto market.
Just look at the growth of gaming users on @0xPolygon
Growth is “ORDERS OF MAGNITUTE” bigger than any other chain ecosystem! And now #zkEVM! Lets keep building lads!Onwards! pic.twitter.com/cBzOQQ3fKR
— Sandeep | Polygon 💜🔝3️⃣ (@sandeepnailwal) October 11, 2022
Moreover, Polygon has been consistently working to create strategic partnerships globally. This partnership facilitates more cultural involvement, especially in the gaming community. Additionally, this partnership greatly promotes the development of the ecosystem as well as community engagement, which could be key in the future price of MATIC as well.
🎆Polygon x @superlayerio 🎆
Celebrate our recent partnership with us as we dive into culture, gaming & investment.
The amount of knowledge within this group is mind-blowing 🤯
👉🏿 https://t.co/Eo2NIrMC1u pic.twitter.com/GYy8vBlOvj
— Polygon – MATIC 💜 (@0xPolygon) October 17, 2022
It is really amazing to see how much Polygon has grown as an ecosystem in recent months. More than 53,000 projects are working within the Polygon ecosystem. This number has increased by 60% since June and around 8 times more than at the beginning of the year.
Large companies such as eBay, Adobe, Reddit, and many more have found Polygon efficient and are currently using the Polygon blockchain.
#Polygon’s thriving ecosystem & robust infrastructure is why #Web2 giants 👇@Adobe@eBay@nothing@Reddit@RobinhoodApp@stripe@Telefonica
And leading #Web3 brands👇@AaveAave@Uniswap V3@opensea
Mark Cuban-founded @LazyNFTsfound their home #onPolygon.
— Polygon – MATIC 💜 (@0xPolygon) October 17, 2022
It remains to see what Polygon may bring next in its realm, but it is certain that the community and the ecosystem may continue to grow.
MATIC Price Prediction
Based on this price analysis on Polygon (MATIC), we could expect another surge in the price of MATIC in the coming days.
MATIC could aim for $1 in the coming days, other things equal. However, the market remains relatively unstable.
Takeaways
- Polygon has slightly increased recently.
- Indicators suggest that the momentum is bullish for MATIC.
- The Polygon ecosystem has been growing at large rates in recent months.
- The price of Polygon (MATIC) could reach $1 in the coming days/weeks.