The MATIC price has been trending sideways in a narrowing triangle for the last six months, which may forewarn an upcoming explosive move. This morning, Polygon’s native MATIC token is slightly higher, trading at $1.486 (+0.42%), +30% month-to-date and +8,000% in 2021.
Polygon currently commands a market capitalization of just over $10 billion, ranking it the 21st-most valuable cryptocurrency ahead of Stellar Lumens. Furthermore, Polygon is the largest layer-2 scaling solution for the Ethereum Network. The network’s ecosystem has grown considerably this year, and yesterday it revealed a potentially lucrative partnership with DraftKings. The sports betting giant announced it will use Polygon’s technology to power its Non-Fungible Token (NFT) marketplace. Draftkings Co-founder Paul Liberman praised Polygon’s scalability, adding, “Although DraftKings Marketplace is still in its nascency, we are bullish on the possibilities that blockchain, NFTs, cryptocurrency and more will present as we prepare for Web 3.0 alongside Polygon and the new innovations ahead for digital collectables.”
Polygon Price Analysis
The daily chart shows the MATIC price is consolidating in a tight triangle formation. Polygon is currently nudging against the upper edge of the triangle at $1.559, which offers significant resistance. Below the market, the rising lower edge of the triangle provides support at $1.145.
The trend line support is reinforced by the 50, 100, and 200-day moving averages ($1.322, $1.245 and $1.116, respectively). On that basis, the bullish argument carries more weight. As long as Polygon holds the 200-DMA and the rising trend line, an upside breakout looks likely. Successful clearance of trend resistance opens the door to the May high of $2.899, around 90% above the last traded price. However, the optimistic view relies on the MATIC price maintaining trend support. Subsequently, if Polygon falls below $1.145, it will invalidate the bullish thesis and indicate a bearish breakdown.
MATIC Price Chart (Daily)
For more market insights, follow Elliott on Twitter.