Over the past seven day, Polygon (MATIC), Ethereum L2 Project has experienced a huge increase in its value. This project gained over 14% within a week of being given much attention by the bulls.
Polygon is currently ranked 11th on the market cap basis. It has been a very busy week. The PolygonDAO has been closing deals and partnerships to expand the project’s reach. The PolygonDAO has been closing deals and partnerships to expand the project’s reach. This could have played a significant role in its increase of 14%.
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However, it’s uncertain if the token will breach its $0.85 resistance in the coming days. MATIC currently trades at $0.83. That’s 0.66% less than the previous 24 hours.
Doubts Despite 7 Day Gains
Despite recording a stunning 14% gain in value, there are still doubts surrounding the project’s next price direction. Today’s coin was stronger against BTC than ETH in the early hours. MATIC saw 1.45% gains and 0.399% respectively against each of these currencies. Also, it traded at $0.8462, an increase of 0.70% over the last 24 hours.
MATIC’s price has moved above both the Exponential Moving Average lines (EMA) 9 and 20. The daily MATIC/USDT chart shows this clearly. The 9 EMA just crossed the 20 EMA in a bullish move. This could indicate a continuing upward trend in the token.
However, traders must be cautious as the Relative Strength Index (RSI) indicator shows that MATIC’s price has established a local top. Relative Strength Index seems to be sloping downward. This indicates that prices have fallen to an excessively low level. Another technical indicator is that the coin’s sale volume has recently surpassed the purchase volume. This means that any rise above the EMAs may be temporary and signal bearish sentiments.TradingView.com: MATICUSD Price Chart
Polygon’s Partnerships Sustaining Its Upward Trend
Polygon announced several partnerships over the last few weeks, which have contributed to its increased value. Its most notable partnership is exclusive partnershipRobinHood is a leading crypto broker. The partnership saw Polygon become the first blockchain supported in the broker’s newly launched web3 wallet.
Upon launch, 10,000 iOS users were given access to the wallet’s beta version. Only 10% of all waitlist sign-ups in May were this number. Robinhood’s main aim for choosing Polygon is to give its users the best possible trading experience. The company cited the technology’s scalability, speed, and cheap network costs as the primary reasons for its decision.
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Polygon also recently announced on Twitter that they’d hired Halborn Security to carry out a security audit for them. Halborn Security, a highly regarded security company that conducts audits on ethical hacking for all blockchain-related companies around the world. It will take eight weeks for the Halborn team to finish this task. They’ll also work with two seasoned full-time security engineers who are well-versed in advanced smart contract hacking, penetration testing, and blockchain protocols.
Featured image by Pixabay, chart from TradingView.com