After reaching an overbought status according to the 14-Day Relative Strength Index at the beginning of this month, the price of MATIC, which is the ticker for the cryptocurrency that is the driving force behind the layer-2 Ethereum scaling solution Polygon, has been sharply decreasing over the past few days.
Coincidentally, this occurred at the same time as MATIC reached new multi-month highs in the $1.57 region; however, the cryptocurrency is currently trading almost 15% down near $1.34. For the time being, MATIC is maintaining its position to the north of its 21-Day Moving Average (DMA) as well as the resistance-turned-support region located around $1.30.
According to the popular YouTube channel Altcoin Buzz, the impressive growth that has recently been seen in the Polygon ecosystem was noted. Earlier this week, Polygon managed to surpass Solana in terms of daily NFT sales (by USD volume), ranking as the second highest that day after only Ethereum, according to Cryptoslam.io. In addition, Altcoin Buzz noted that Polygon managed to surpass Solana in terms of daily NFT sales (by USD volume).
Polygon has achieved a total of over $7.5 million in NFT sales over the course of the past week, placing it as the third-highest blockchain in terms of revenue.
Altcoin Buzz cited the co-founder of Polygon as saying that this was before the NFT trading platform Y00ts had even launched on the Polygon protocol. Some data clearly show the massive expansion that has taken place in the Polygon ecosystem. According to statistics that were supplied by Token Terminal, daily fees have also skyrocketed, reaching a peak of about $350,000 earlier this month. This represents an increase of somewhere in the area of 10x from the annual values that were seen earlier.
Because of the spike in fees, Polygon is currently appearing to have the best value it has all year based on the ratio of its circulating market capitalization to its fees. The ratio had been hovering at 215 before its recent drop, having previously reached yearly highs of over 500.
This may encourage bulls to continue loading up on Polygon and keep the cryptocurrency moving higher within the confines of the bullish trend channel that has been in play since the beginning of the year. Moreover, this may keep the cryptocurrency moving higher within the confines of the trend channel that has been in play since the beginning of the year.
If MATIC is successful in finding support within the bullish trend channel, it is expected that the stock will quickly retrace its steps to the higher monthly highs seen around $1.56. Despite the most recent pullback, MATIC bulls continue to have confidence that a retest of the highs reached in late March, and early April 2022 is a possibility.
This is due to the fact that all of the major moving averages have been surging higher, the growth numbers for Polygon have continued to impress, and the broader cryptocurrency markets have continued to look healthy this year. As a result, optimistic price forecasts continue to be issued.
The question of whether or not it is too late to purchase an asset is never the appropriate one to ask. The question that needs to be asked is whether or not a certain asset should be purchased. This, of course, relies on how an investor evaluates the stock’s potential price performance over the long run.
If, after conducting your own research, you conclude that MATIC offers a favorable risk-reward at current pricing and is likely to experience a significant price increase over the next few years, then you should probably consider purchasing some. This is true regardless of how well the token has been doing recently. If you do not believe that MATIC has a suitable risk-reward ratio, then you should avoid engaging with it.
The outlook for the near future of MATIC appears to be rather optimistic. Traders who are searching for quick profits, on the other hand, may want to think about investing in other high-potential tokens, such as those being sold in pre-sale by promising up-and-coming cryptocurrency companies. The members of the Cryptonews Industry Discussion team have compiled a list of the top 15 cryptocurrencies for 2023. Here, we take a look at some of the most promising contenders on that list.
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