Good Time to Buy Polygon (MATIC)? Fundamentals Look Promising
Polygon (MATIC) is trading somewhat steady after a sharp dip earlier in the day and has seen lower levels of volatility than several other
Polygon (MATIC) is trading somewhat steady after a sharp dip earlier in the day and has seen lower levels of volatility than several other cryptocurrencies lately, even as the sentiment in the wider sector picks up. At the time of writing, MATIC/USD is trading at around $1.11.
The MATIC token has been facing pressure since the beginning of this week following reports about a successful hack of the SafeDollar DeFi protocol that operates on tis ecosystem. The attackers camped off with around $248,000 worth of stablecoins from the SafeDollar smart contract, causing its value to crash down to zero, and raising concerns about the safety of the Polygon network.
While news of this latest DeFi hack has raised some red flags among investors towards the capabilities of the Polygon ecosystem, there are some strong fundamentals that do offer some amount of support to the MATIC token despite its current downtrend. SmartDefi – a consumer centric app that aims to drive more users to invest and trade in the crypto space, has been designed on the Polygon network and is gearing up for launch soon. The company, which calls itself the RobinHood equivalent for the crypto sector, claims that this is the first consumer app built on Polygon’s network.
In more promising fundamental developments, Polygon has confirmed its plans to launch an all-purpose scalable data availability layer called Avail. This general purpose blockchain network aims to provide scalable data for use within standalone chains, sidechains as well as other L2 solutions.
Key Levels to Watch
On the H4 chart of MATIC/USD, most of the moving averages as well as the MACD indicator are suggesting a bearish bias among traders. However, the momentum indicator is flashing some buying interest as well.
The price is getting ready to approach the pivot point at $1.14 and a confirmation of a bullish mood can only happen once buyers manage to overcome this level. If the uptrend strengthens, we can see MATIC’s price going up as high as $1.37 before encountering resistance.
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