Polygon blockchain was originally developed as the layer-2 scaling solution for the Ethereum chain and is backed by Binance and Coinbase. Later renamed the Polygon network, its most prominent tool is the Polygon SDK which supports multiple different formats of applications.
The attempts to simplify the process of complex blocks formed in the Ethereum blockchain to increase the transaction speed have enabled it to deliver up to 65000 transactions per second in 2022. There has been frequent work on new protocol implementation and intends to provide more efficient and even higher transaction speeds.
Polygon has a market capitalization of $4,968,571,681 with close to 8 billion tokens already in circulation. 2 billion more MATIC tokens are yet to enter the supply circulation. Polygon uses a network of Proof of Stake validators to secure its assets, of which staking became an essential aspect.
Validators can stake their MATIC tokens to become a part of the consensus ecosystem and earn their staking rewards in the form of MATIC tokens. Holders can even earn rewards by delegating their MATIC tokens to other validators without dedicating time to validating processes.
In 2021, Polygon jumped significantly by April 2021, and after witnessing a hard profit booking, it again hit the same all-time high zone. Since January, the MATIC token has turned into negative bias marking a tremendous decline from its December 2021 peaks to the last traded value of $0.62.
Polygon attempted to break out of the negative sentiment in March 2022 but failed to make an impact. Current scenarios indicate a second attempt to break out of its negative trendline. With key technical improvement potential, MATIC tokens can surpass our expectations. Check out Polygon price prediction to know the future performance of the token.
On candlestick charts, MATIC jumped since June 2022 dips and has made a nice jump from its recent lows of $0.277 to the peak of $0.629. Currently, the price trend indicates an uptrending consolidation to test the immediate resistance levels. Despite the RSI dropping to oversold zones in this time frame, the jump from mid-June has created a higher buying sentiment in the short run.
MACD indicates that the coin is about to end the negative trend with a bang as the MACD line is about to crossover the Signal line. It is also testing the strength of sellers from June’s profit booking levels. Transaction volumes can be seen taking a huge hit since its breakout in January 2021 but holding the token as a storage value wouldn’t be able to create a demand rise since the volume is available in billions.
Daily candlesticks have created wonders with its double-digit rise of July 13, 2022, enabling MATIC to breach out of its 50-Day EMA curve. The next upside resistance would be the 100 EMA curve, currently trading at $0.796, followed by price movement resistance of $1.262.
Transaction volumes indicate a sudden buying rally since May 2022. It indicates hoarding of the tokens creating a spike in the RSI indicator to showcase level 59, which is close to the overbought zones of 75.
The downside movement from this point onwards should be restricted as MACD has entered the positive axis after marking a bullish crossover on June 21, 2022. The future outlook is positive for the coming months, and holders should get a decent reward for their patience.