Polygon, much like the rest of the cryptocurrency market, is flat and could post deeper losses in the sessions ahead. Currently, the MATIC price is tethered close to Q1 2022 lows, trailing the USDT in the past day and week of trading.
Overall, the path of least resistance remains southwards despite the Polygon’s ecosystem expanding and new initiatives launched.
As per the performance in the daily chart, how prices react at immediate crucial support levels would shape the medium and long-term performances of the coin.
Polygon’s Ecosystem Growing, Supernets Released
Still, MATIC holders are optimistic. The demand for block space in Ethereum is at record highs, and the network is struggling to scale. Provided scaling issues persist, layer-2 networks like Polygon will remain an option for users.
Already, the deployment of Uniswap on Polygon is a massive boost and an endorsement of the network’s credibility. Less than three months after launching, Uniswap’s TVL in Polygon is the largest, commanding roughly 50 percent of the total TVL.
Furthermore, Polygon announced the Supernets—dedicated blockchain webs–powered by Polygon Edge. Accompanying this release is a $100 million fund to spur adoption and aid in development.
Polygon Supernets are dedicated, scalable blockchains that aim to ignite mass adoption of Polygon and Web3.
To support this ambitious product and goal, we are announcing a $100M support fund. 💜 pic.twitter.com/UoaHlWzbeT
— Polygon (Labs) (@0xPolygonLabs) April 22, 2022
Ethereum layer-2 Still Essential
Existing as a sidechain, Polygon is scalable and transaction fees near-zero. At the same time, it is compatible with Ethereum and other EVM networks–an advantage for users. These features are advantageous for MATIC and could prop the coin’s valuation in the days ahead.
Polygon Price Analysis
Polygon is bearish at spot rates.
Notably, MATIC is relatively stable versus the USDT in the previous day and week, pinned at around Q1 2022 lows of $1.30. Provided buyers sustain prices above this level, buyers stand a chance.
Further supporting this outlook is that MATIC prices are waving inside the April 18 bullish engulfing bar. From an effort versus result analysis, this is bullish.
Therefore, optimistic traders may ramp up above $1.30 in anticipation of a reversal to last week’s highs of $1.50 and later $1.70 in a buy trend continuation pattern.
Safer entries above $1.50 would be the basis for another leg up towards April highs in a buy trend continuation pattern.
On the flip side, deep losses below $1.30, registering new 2022 lows, invalidate the positive outlook, possibly driving MATIC to $1.20.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
If you found this article interesting, here you can find more Polygon news