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Polygon effectively transforms Ethereum into a full-fledged multi-chain system (aka Internet of Blockchains). This multi-chain system is akin to other ones such as Polkadot, Cosmos, Avalanche, etc. with the advantages of Ethereum’s security, vibrant ecosystem, and openness.
The $MATIC token will continue to exist and will play an increasingly important role, securing the system and enabling governance.
Polygon (formerly Matic Network) is a Layer 2 scaling solution backed by Binance and Coinbase. The project seeks to stimulate mass adoption of cryptocurrencies by resolving the problems of scalability on many blockchains.
Let us see the technical analysis of MATIC.
Past Performance of MATIC
MATIC has been a step ahead of the rest of crypto in gaming NFTs. The strength of the token is coming from the confidence of investors from its use cases. It is trading today on $2.219 and is approximately 4 percent up. However, the coin has been increasing since the past few days and has moved from the November end level of $1.623 to its current levels. A new listing on 21Shares ETP has also brought inflows to the token.
Source: https://www.tradingview.com/x/CE0Jt74v/
MATIC Technical Analysis
The On-balance Volume is at 1.5 billion at the higher end of the spectrum and has been increasing steadily. It has been showing a stable incremental movement. One can look at multiplying the trades and staking the token to earn higher.
RSI has been in the overbought region of 65 percent showing the price and volume are quite high and can turn the prices around which calls for a guarded trading.
The MACD and trend line has been converging at the histogram briefly in November and is now increasing indicating a strong change in price.
Price Trends for the Day-Ahead and Tomorrow
MATIC is receiving STRONG BUY signals as per oscillators and indicators. MATIC's latest push upside made it move above its pivot level of $1.8084. One can watch for it to move beyond the resistance level of $2.0947 and $2.271 in the next one to two days. With a new environment of NFTs and an increased number of users, the ground is set for higher revenue for the network with the total value locked having increased drastically.