Good Time to Buy Polygon (MATIC) as it Makes Double-Digit Weekly Gains
On Friday, Polygon (MATIC) is trading mostly steady after easing slightly lower earlier in the session, but is on track to post a double-digit gain for the week. At the time of writing, MATIC/USD is trading around $1.01.
The return of the bullish sentiment towards Bitcoin triggered strong buying interest in altcoins, one of the main drivers of the rise in Polygon over the past few sessions. Technical indicators point to promising signs that the immediate price action in the MATIC token could be headed in the upward direction in the near-term.
On the fundamentals’ front, there’s a lot of interest in the leading L2 scaling solution for Ethereum among institutions and projects. Canada-based fintech company Mobilum Technologies Inc. has entered into a partnership with Matic Network to create a fiat-to-crypto bridge that will allow users to purchase MATIC tokens using their credit cards without signing up for an account with a crypto exchange.
Meanwhile, Index Coop (INDEX) – a decentralized and autonomous asset manager, is looking to launch a Polygon based index fund which would track the price of the 10 best performing projects on its ecosystem. Termed as the Polygon 10 Index (P10), such a fund would give interested users an opportunity to invest in the best performing or blue-chip projects on Polygon.
In addition to the above mentioned developments, the MATIC token is expected to enjoy support from news reports about how The Graph is looking to expand its presence by leveraging Polygon’s network for its billing technology. The Graph is a blue-chip Web3 protocol that offers decentralized indexing and querying and is used by numerous developers looking to build dApps and products on Ethereum and IPFS.
Key Levels to Watch
On the H4 price chart of MATIC/USD, most of the larger timeframe moving averages are flashing buy signals. However, the smaller MAs as well as leading technical indicators MACD (brown) and momentum (blue) are sending mixed signals by exhibiting a bearish bias as well.
At the moment, Polygon’s MATIC is holding above the pivot point which sits at $0.85 and has also overcome the first resistance level at $1.07. An increase in selling pressure can send the price down to test these levels.
On the other hand, if more buyers jump into the market, we could see MATIC heading higher to face the next two resistance levels at $1.21 and then at $1.58.