In addition to automated chart patterns, altFINS’ analysts conduct technical chart analyses of top 30 cryptocurrencies. We call these Curated Charts and they evaluate 5 core principals of technical analysis,Trend ,Momentum,Patterns,and Resistance.
Polygon (MATIC) technical analysis:
Trade setup: Broke below $1.50 resistance and stabilizing around $1.25 support area (also 50-day MA). Need it to break back above $1.50 resistance. Forecast: $2.00.
Trend: Uptrend across all time horizons (Short- Medium- and Long-Term).
Momentum is Bearish ( MACD Line is below MACD Signal Line, and RSI is below 45).
OBV (On Balance Volume): is declining, indicating that volume on Up days is lower than volume on Down days. Hence, demand (buyers) is below supply (sellers).
Support and Resistance: Nearest Support Zone is $1.25, then $1.00. The nearest Resistance Zone is $1.50, then $2.00 and $2.50.
What is Polygon (MATIC)?
Polygon is a platform design to support infrastructure development and help Ethereum scale. Its core component is a modular, flexible framework (Polygon SDK) that allows developers to build and connect Layer-2 infrastructures like Plasma, Optimistic Rollups, zkRollups, and Validium and standalone sidechains like the project’s flagship product, Matic POS (Proof-of-Stake). Polygon rebranded from Matic Network in February 2021 and pivoted towards supporting multiple Layer-2 infrastructure. It will continue to support the Matic POS sidechain and Plasma-based payment system, which currently hosts over 90 applications.
Polygon launched as Matic Network in 2017. It was co-founded by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun to tackle blockchain scaling and usability issues. Traditional blockchains face high latency and transaction costs that can hamper their progress towards adoption, technological efficiency, and user experience. Layer-2 scaling solutions or external networks can act as load balances for networks that can’t inherently scale as user activity increases. In 2017, Plasma was at the forefront of blockchain scaling, and Matic featured a plasma-driven scaling approach and Proof-of-Stake (PoS) sidechains to assist Ethereum as user demand for the network grew. Over time, Matic POS became a prominent scaling option for various applications. Matic rebranded to Polygon in February 2021 to become a Swiss Army knife for scaling solutions. Polygon plans to add support for rollups and Validium to its already-existing Plasma/POS chain. The project recognizes that Ethereum may not scale from a single solution in isolation. There’s a possibility that several solutions will co-exist and help scale Ethereum collectively, and Polygon aims to play a central role in supplying the infrastructure necessary to launch any of these systems.
Supply Curve Details
Tokens sold in the IEO (initial exchange offering) unlocked after the sale. Half of all private sale tokens unlocked at the time of listing and the rest vested after six months (October 2019). Details on the remaining token release schedule are available here.
Token Usage Details
The native token of Polygon is MATIC. This token serves the following purposes: Fees: MATIC token’s primary use case is to pay for the transaction fees in the network. The token is designed to be a utility token that functions as the unit of payment and settlement between participants who interact within the Polygon ecosystem. Staking: Matic sidechains enforce consensus using a Proof-of-Stake (PoS) layer in which network participants stake MATIC to participate as validators and earn staking rewards. Computational resources are required for performing various functions on the Polygon Network, such as validating blocks and publishing proofs. MATIC inflation serves to reward these resource providers to bootstrap security and maintain network integrity.