Polygon (MATIC) just bumped Solana (SOL) from Cryptomarketcap’s top 10 projects by market capitalization!
How high will MATIC/USD fly?
I’m looking at the daily chart for clues.
MATIC/USD: Daily
MATIC/USD Daily Chart
In case you’ve been too busy recovering from your Halloween weekend, you should know that the Polygon network – formerly the Matic network – has been getting a lot of buzz from crypto HODLers.
And why not? Meta recently unveiled a toolkit that would use the Polygon network to allow its 2 billion Instagram users to mint and sell non-fungible tokens (NFTs).
In the same week, banking giant JPMorgan Chase & Co executed its first DeFi transaction while using the Polygon network.
This is likely why MATIC/USD jumped from its consolidation near .8000 and busted above the 1.0000 psychological handle to trade near the 1.2000 area.But that was last week.
MATIC/USD is currently encountering resistance around 1.3000, which isn’t surprising since the level lines up with the 38.2% Fibonacci retracement level of 2022’s big downswing.
Not only that, but Stochastic is hinting of a bearish divergence as it shows lower highs while price is making higher highs.
How high can MATIC fly?
Unless we see more MATIC-specific headlines, MATIC/USD’s momentum might depend on overall risk sentiment.
Worries about high interest rates, big corporate layoffs, and global growth slowdown can drag MATIC/USD back below the 1.0000 mark.
But if risk-taking continues to prop major crypto tokens higher, then MATIC/USD could take cues from the 100 SMA crossing above the 200 SMA and push the pair to new monthly highs.
Watch the current consolidation closely, errbody!
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