MATIC price eyes 15% advance as Uniswap prepares to migrate to Polygon
- MATIC price rallied 10% over the past 12 hours, suggesting a resurgence of buying pressure.
- Investors can anticipate a 15% upswing to $1.88 as this bullish scenario continues.
- The proposal to migrate Uniswap to Polygon received a 7.79 million UNI ‘yes’ vote.
MATIC price recently swept the swing lows of a crucial barrier, kick-starting an upswing. This development comes as the cryptocurrency market recovers from the COVID-induced crash over the past three days.
Uniswap on Polygon soon
Uniswap saw a proposal on its forum on November 20, suggesting that it should migrate to Polygon, a scaling solution. Since Uniswap, an automated market maker (AMM), is built on the Ethereum blockchain, it is plagued with high gas fees and slow transactions. Therefore, Polygon proposed to migrate the AMM on its platform to address these issues.
The proposal was by way of seeking authorization from the AMM’s team for the migration. With 7.79 million UNI voting ‘yes,’ it is likely to see a Polygon chain-based Uniswap soon. This will allow users to transact on the AMM without having to worry about high gas fees.
Thank you to the entire @Uniswap community for taking out your precious ⏲️ to cast your vote!
— Polygon | $MATIC - We're hiring! (@0xPolygon) November 26, 2021
Extremely humbled to see this level of support.
Let's do it https://t.co/c5oxG9KiUd
While Uniswap is the latest to come aboard the Layer 2’s network, other popular platforms like Aave, Curve, Balancer, SushiSwap, Matcha, and others are already present, hinting at the capability of the scaling solution.
MATIC price prepares for comeback
MATIC price dropped 24% from November 26 to November 28 to set a swing low at $1.49. Interestingly, this downswing swept the lows formed at $1.52 on November 22, allowing market makers to collect the liquidity and signal the start of an uptrend.
This move was quickly followed by an 11% upswing to where MATIC price currently trades - $1.65. Going forward, investors can expect Polygon to grapple with the 50% retracement level at $1.75. If MATIC price manages to produce a higher high above this barrier, it will confirm the start of an uptrend.
In this situation, Polygon could continue its ascent and make way to retest the $1.88 resistance barrier. This climb would constitute a 15% advance from the current position. If the buying pressure increases, MATIC price could extend this run-up to tag the range high at $1.97.
MATIC/USDT 4-hour chart
While things are looking up for MATIC price, a failure to flip the $1.75 hurdle to support will indicate weakness among buyers. If the selling pressure increases, knocking Polygon to produce a lower low below $1.52 will invalidate the bullish thesis.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
