Price of Polygon’s native token Matic has surged more than 45% in the past two days amid a recovery in the broader crypto market. The digital asset can continue its bullish trend if it sustains above the $0.9 level in the near term, experts say.
From March 2020 till the peak at $2.45, Matic has risen almost 163 times from its initial market capitalization giving out a clear intent of its adoption in the marketplace, say experts.
The digital token’s popularity has increased amongst crypto investors over the last few months owing to the fact that Polygon Network is striving to solve the scalability and usability issues with ethereum while offering faster and cheaper transactions.
However, prices corrected since late May and have been undergoing a period of consolidation along with correction in the bigger cryptos such as bitcoin and ether.
“Historically, Matic has witnessed bullish buying momentum around its support level of $0.677 and the same behaviour has been seen over the past two days,” said CoinDCX spokesperson.
Unlike bitcoin, Matic had seen a deeper 75% correction in prices from its peak of $2.62 on 18 May 2021. Amid some stability in the crypto market, Matic recovered from a low of $0.64 on 20 July and hit a hit of $0.93 during the last 48 hours.
On Thursday, the digital token was trading 7% higher at $0.89 at around 4.20pm IST, as per Coingecko.
“Considering it has bounced back sharply from the $0.677 support level, Matic can resume its bullish momentum if it crosses and sustains $0.9 in the near term. If it fails to sustain above this, any further upward movement seems limited and could see it consolidating in a tight range of $0.677-$0.90 for the short-term. Downside momentum, if renewed, could get exaggerated below $0.54 levels and should serve as a stop-loss for traders,” the spokesperson added.
Matic is an asset with a market capitalization of just above $5 billion in comparison to bitcoin, which has the highest market cap close to $600 billion.
According to Avinash Shekhar, co-CEO of ZebPay, the short-term ripple effect of panic or fear of missing out (FOMO) tends to be more impactful on the smaller assets in general.
For Matic, Zebpay has support at $0.725 and $0.65, and resistance at $1.05 and $1.22 levels.
The crypto market has been in a bearish phase over the past two months, but experts believe that there is a lot of interest from mature users who have been indulging in long-term investing rather than just trading.
“We are seeing quite a few investors actively pursuing SIPs in bitcoin and ethereum rather than investing lump-sum amounts in these cryptocurrencies. These trends clearly depict that despite the fall in prices, the overall market structure is improving with the growing pie of mature investors besides new users too are entering the crypto market,” said Gaurav Dahake, founder and CEO, Bitbns.
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