Polygon (MATIC) Strengthens Further: Good Time to Buy?
Polygon (MATIC) is headed higher in early trading on Wednesday, with investors seemingly shrugging off news about the hack on Poly Network – a cross-chain DeFi platform that runs on the Polygon blockchain as well. At the time of writing, MATIC/USD is trading around $1.281.
Ever since the mood in the crypto market was lifted and the company announced its increasing interest in the GameFi and NFT space by setting up Polygon Studios, the MATIC token has made considerable gains and been on a steady climb upwards. The Ethereum L2 scaling solution has seen its TVL soar to over $9.4 billion, remaining supported and registering limited losses even during the bearish mood prevalent in the crypto sector in recent months amid the boom in the DeFi space.
Till date, there are over 350 dApps running on Polygon’s ecosystem and the network handles nearly 7.5 million daily transactions, an indicator of its rising popularity among users. Further on-chain analysis by Glassnode reveals that the total number of MATIC addresses has skyrocketed from less than 60,000 at the beginning of the year to over 470,000 at present.
Polygon’s MATIC token can also enjoy some support over the recent announcement from bridge protocol Hop supporting instant withdrawals of this cryptocurrency to Ethereum and other supported scaling solutions. This development drastically cuts down withdrawal time from seven days to a mere 4-5 minutes while bringing down gas fees considerably as well.
Key Levels to Watch
Analysis of the 4-hour chart of MATIC/USD reveals a strong bullish bias among moving averages as well as leading technical indicators MACD and momentum. The price is well past the pivot point at $1.094 and the first resistance at $1.183.
At the moment, MATIC’s price is holding right under the second resistance point at $1.285 and further buying interest can lead Polygon’s token higher, past the $1.30 level and even past $1.40. The third resistance buyers could encounter sits at $1.477.
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