Polgon's MATIC token is on track to reach new all-time
Image Source: SwissBorg

Polgon’s MATIC token is on track to reach new all-time

MATIC’s price has been on a bullish streak, trading to practically every other cryptocurrency’s inverse. As a result, it was perfectly poised for a rally, and it is currently on course to set a new all-time high weekly closing.

MATIC’s price rises during a sell-off for the following three reasons:

The MATIC price has overcome a key stumbling block on its way to fresh all-time highs. The breakout above $1.74 is the first cause for the recent surge. The 61.8 percent Fibonacci Retracement and the final high volume node in the 2021 volume profile are both found at $1.74.

Polgon's MATIC token is on track to reach new all-time
Image Source: ElevenNews

MATIC will have an easier time heading up than down if it breaks and closes over $1.75. Above $2.00, the volume profile becomes noticeably thinner. The shift of the RSI from a bear market to bull market levels is the second cause for the surge. Since mid-August, the MATIC price has been trading in bear market circumstances in the Relative Strength Index.

Buyers, on the other hand, have tested the ultimate overbought level of 65 six times since October 13th. The Relative Strength Index (RSI) switches into bull market conditions with a breakout above 65 and a rise to 70.

The third and last reason for the rally may be overlooked by some traders. The MATIC price has reached an all-time high of $2.44, although the all-time high close is $1.82. As a result, buyers are most likely setting MATIC for a fresh all-time high closing on the weekly chart.

This would be a major event for MATIC, and it would almost certainly serve as a springboard for greater prices.

However, extreme caution should be exercised. To keep these new multi-month highs, MATIC pricing needs to see continued purchasing pressure and bullish conviction. If purchasers do not support MATIC, the result will almost certainly be a bull trap, with a flash crash towards $0.80.

Polygon Network is a new cryptocurrency that is built on high-scalability blockchain technology. The Polygon Network is powered by its native token MATIC, which is an Ethereum token.

Matic Network aims to solve Ethereum’s scalability issues. The platform was renamed Polygon network in February 2021, with a few technology improvements and a bigger goal.

It was founded by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun to address specific scalability challenges and boost transaction speeds while also increasing network scalability.

If you find this article informative then do not forget to share it with your friends!

Also read: El Salvador purchased 25 million dollars of Bitcoin