• MATIC price tests 50-day simple moving average (SMA) as pullback proceeds in an orderly tone.
  • Volume levels during the pullback do not reveal a mass exodus from the digital asset.
  • OKEx, a leading crypto exchange and derivatives trading platform, partners with Polygon. 

MATIC price is resisting the notable Bitcoin price strength today. Instead, Polygon is flat at the time of writing, showing a lack of faith in the rally of the bellwether cryptocurrency. As long as support at the 50-day SMA remains active, MATIC price should be positioned to resume the advance from the May 23 low.

OKEx leverages Polygon scaling solution to deliver a better client experience

OKEx, the world-leading cryptocurrency spot and derivatives exchange, announced the integration of Polygon to allow more Ethereum-compatible applications to be built and connected. The outcome of the integration will be a quicker and more cost-efficient user experience when transferring funds from exchanges to the Polygon PoS network.

In the old process, users needed to withdraw funds from OKEx to a Layer-1 wallet, then connect the wallet to the Polygon PoS network, while being charged an exchange withdrawal fee and wallet contract fee. With the new integration, OKEx users can now transfer funds directly to the Polygon PoS network, with the withdrawal fee waived by OKEx.

OKEx - Polygon Integration Flow Chart

OKEx - Polygon Integration Flow Chart

Users will be able to withdraw up to 23 digital assets with the integration, and in total, they will save nearly 25% in transaction fees with faster transactions.

OKEx CEO Jay Hao views the integration as another example of the exchange being a “trading partner that strives to make the crypto journey as easy and as cost-efficient as possible.”

Polygon highlighted the fact that the integration “will make it easier and more seamless for new users getting into the Polygon and Ethereum ecosystem.”

The demand for Layer-2 solutions on Ethereum has skyrocketed this year due to punishing network congestion and unbearable gas costs. As a result, transaction settlement times spiked, making microtransactions almost impossible on the Ethereum ecosystem. In response, Polygon has engineered a scaling solution that solves those issues, making it a perfect partner for OKEx.

MATIC price lounges, waiting for a new catalyst to revive the opportunity

MATIC price strength was a positive highlight during the May correction, despite the initial plunge of 75%. Polygon recorded an impressive rebound of 230% from the May 23 correction low. For a time, the digital asset was proceeding with a cup-with-handle base, but the opportunity vanished when the general negative sway in the cryptocurrency market took control.

Since May 27, MATIC price has trended lower on meager volume, coming near the 50-day average, including yesterday’s intra-day sweep lower. Polygon now trades above the 50-day SMA, potentially forming the second consecutive doji on the daily chart. The dojis can represent indecision on the side of both buyers and sellers, suggesting that everyone is equally matched. Others interpret the dojis as an indicator of a reversal in the trend.

In isolation, dojis are market neutral, but on a consecutive basis and along a tactically important level like the 50-day SMA, investors should entertain the potential for a trend change. To confirm a change in trend, MATIC price needs to close above the May 7 high at $1.74. Once accomplished, Polygon is unrestricted to revisit the May 26 high at $2.48 that corresponds closely to the highest daily close on May 18 at $2.44.

More advanced targets include the all-time high of $2.89, the 161.8% Fibonacci extension of the May correction at $4.21 and finally, the topside trendline extending from March 11 at $4.94, achieving a 230% return from the current price.

A higher probability scenario is a test of the May 26 high at $2.48 before another pullback or pause, earning Polygon investors a 70% return for their commitment.

MATIC/USD daily chart

MATIC/USD daily chart

Polygon is gifted by a surplus of support levels just below the current price, including the 50% retracement of the rebound from the May 23 low, the 50-day SMA, the 61.8% retracement, the rising trend line and the 78.6% retracement. 

If MATIC price prints a daily close below the 50-day SMA at $1.26, the improving outlook will be shelved in favor of more caution. However, as long as the 2021 rising trend line around $1.03 is not disbanded, it is unnecessary to entertain more expansive losses for the Indian blockchain scalability platform.

Polygon is receiving an increase in attention for its answer to some of the challenges confronted by the Ethereum blockchain, such as heavy fees, poor user experience and low transactions per minute. It is involved with the timeliest areas of cryptocurrencies, including DeFi, DApps, DAO’s and NFT’s. 

The recognition is deserving, but after the historic climb in 2021, investors would be well-served to question if the potential has been fully priced into the digital asset. For now, stick to the levels for positioning decisions and stay abreast of the entire Polygon story as it unfolds.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

MATIC price ready to surge to $2.20 as Polygon trend reverses

MATIC price has been slowly declining and is down by 42% following the swift rebound to the reaction high of $2.43 from the May correction. While Polygon price action appears to be heading south, the Ethereum-based scaling cryptocurrency is raising the probability of a sharp trend reversal to the upside. 

More MATIC News

XLM price shows strength above $0.36, releasing Stellar for a 30% rally

XLM price struck support at the 61.8% retracement level yesterday before rebounding to close positive on a day that initially looked bearish for the cryptocurrency complex. Until Stellar can close above yesterday’s bullish hammer candlestick pattern, the outlook is neutral.

More Stellar News

Shiba Inu looks primed for reversal

SHIB price has been on a descending trend for more than a week as it shed almost half of its gains. This downswing saw a reversal as it tagged a range low and is hinting at a move toward equilibrium.

More SHIB news

El Salvador recognizes BTC as legal tender, BTC and altcoins look ready to pop off

El Salvador officializes Bitcoin as money. After the announcement during the Bitcoin 2021 conference in Miami on Monday, the Salvadoran legislature passed the bill making Bitcoin legal tender in El Salvador.

More Crypto news


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast