Polygon’s MATIC/USD Attempts Bullish Rally after Flashing Key Signal. Should you Buy? - Forex News by FX Leaders
Polygon MATIC keeps making lower highs

Polygon’s MATIC/USD Attempts Bullish Rally after Flashing Key Signal. Should you Buy?

Posted Tuesday, January 11, 2022 by
Eric Nkando • 2 min read

Polygon’s MATIC/USD surged more than 8% on Tuesday, defying the overall crypto weakness, as other tokens also recovered, albeit slowly. MATIC/USD, one of the top performing coins since mid-November, hit an all-time high above $2.90 on December 27. However, it has faced weaknesses, plunging to a low of $1.90 on January 8. 

Now, MATIC/USD is showing signs of recovery, jumping to a high of $2.22 on January 11, from $1.92 the previous day. The recovery happened after MATIC/USD flashed a key bullish signal on the daily chart on January 10. 

MATIC/USD – A Daily Technical Outlook

Polygon’s MATIC/USD Attempts Bullish Rally after Flashing Key Signal. Should you Buy?

MATIC/USD Uptrend Intact on Daily Chart

Looking at the daily chart, MATIC/USD has found support at $2.04 in the latest market drop. Despite the recent weaknesses, the token has maintained an uptrend on the daily chart, with clearly higher highs and higher lows since September 29. Now, MATIC/USD is showing a lot of buyer strengths, with the token jumping from a bullish pin bar that formed at the $2.04 level on January 10. 

Polygon Network Boosting MATIC/USD

Based on the daily chart, MATIC/USD has been on a bullish trendline, boosted by positive developments on the Polygon network. However, the latest announcement is helping the MATIC/USD token to soar higher. On January 11, Plonky2 was launched on Polygon to speed up the proving system. Plonky2 claims to be natively compatible with Ethereum and 100 times faster than existing alternatives. It aims to boost Ethereum to a billion users through zero-knowledge proofs without sacrificing security and decentralization.

The news of the launch of Plonky2 was well received by Polygon fans, as the token started to rise afterwards. Following a busy 2021, Polygon is again proving to be Ethereum’s blockchain of blockchains, by connecting compatible blockchain networks. The explosive growth of the network and its native token, MATIC/USD, in the coming days depends on how much the Polygon ecosystem continues to expand. For now, we see a bullish momentum developing, and MATIC/USD could reclaim previous highs.

MATIC/USD Trade Analysis and Trade Idea

After defying a decline below $2.04 and maintaining an uptrend that started in late September, MATIC/USD is headed higher and presents a viable buy opportunity. However, the level around $2.24 could offer some resistance to MATIC/USD. This level has acted as a minor resistance zone previously, and the token could retrace after hitting it. Therefore, I recommend a buy after a short retracement, as long as the support at $2.04 continues to hold and MATIC/USD remains on an uptrend. A buy trade should target areas around $2.40, $2.60, or up to $2.80 as the take profit, depending on the bullish momentum. Good luck!

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