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Polygon was previously known as the Matic network, and it is a system for building interconnected blockchain networks. After gaining popularity, Ethereum faced slow speed and delayed transactions issues, and MATIC solved this problem using a sidechain solution.
With Polygon, developers can launch blockchains tailored to their needs. It can be customized with a range of modules to add more specific functions.
Polygon architecture has four layers:
Ethereum Layer: A set of smart contracts implemented on Ethereum.
Security Layer: It plays the role of a validator as a service and adds a layer of security.
Polygon Networks Layer: The ecosystem of this blockchain network.
Execution Layer: Helps in executing smart contracts.
Truly, Polygon is a strategic shift for creating a multichain system on Ethereum with a long-term goal of enabling a borderless world where users can utilize decentralized products, services without intermediaries.
The MATIC coin is contributed to security through stacking and is used to pay gas fees, and it has various other utilizations in the Polygon ecosystem.
Let’s analyze the price chart of the MATIC token! Visit here if you wish to know about MATIC price prediction!
At the time of writing this post, it is $2.53 and shows all signs of bullishness. It has been creating higher highs and higher lows for the last five months. The ATH of $2.8 worked as a resistance level, and the price fell from that level.
However, it has created a support level of around $2.43, which it may not break in its bull run if it breaks the level; the next support level will be around $2.15, which is the ideal price to buy this token.
The MACD is still bullish on the daily chart, and RSI is above 55, which is excellent. The Bollinger Band shows much volatility, but the candlesticks are forming in the upper half, so overall, it is a bullish sign.
The moving average is also stable, but today’s candlestick is below the MA line. Overall, most of the technical tools qualify it as a bullish price chart. However, should you invest now?
Indeed, Polygon has great potential as a sidechain of Ethereum. ETH is the world’s second-largest cryptocurrency, and MATIC is associated with the token; you can assume the significance of this coin. Moreover, MATIC is available at a lower price point than BTC and ETH.
For long-term and short-term investors, you should buy it at around $2.15 level, which can be a stronger support level if it breaks the previous level. Please set a stop loss of around $1.9. Certainly, you can hold the coin for the long term and generate maximum revenue in the future.