- MATIC price has rallied 21% as it broke out of an ascending triangle pattern.
- The buyers need to clear a few more hurdles to realize the 150% rally to $4.32.
- Polygon adoption continues to rally as the CEO highlights the importance of scaling solutions.
MATIC price has breached a crucial resistance barrier and is hovering above it. This recent uptick in buying pressure has triggered a massive bull run for the Layer 2 token. Therefore, investors can expect Polygon to continue its journey.
Polygon and Layer 2s to be relevant
Polygon announced that it received its first Insurer - Tidal Finance. With significant exploits in the DeFi ecosystem, Tidal Finance will help secure the space, which is why it has partnered with Polygon.
The project aims to solve DeFi insurer’s supply and demand problem by “allowing capital leverage as well as additional token incentives to increase capital return.” The announcement of this partnership adds,
This collaboration is aimed to increase safety measures for top quality Polygon projects through Tidal Insurance. Projects need to meet certain criteria in terms of auditing, TVL, and other safety measures. Qualified projects will be awarded with a premium discount offering and MATIC incentives for their coverage providers.
Ethereum price is currently at an all-time high, and the ecosystem around it is bustling with dApps, NFTs and meme coins. However, the two reasons why not many users are complaining about gas fees are due to the London Hardfork and the scaling solutions. Polygon, more commonly known as MATIC, has been a significant help to onboard projects and users to the ETH blockchain, who otherwise would have taken a different route.
As a result, Polygon is positioned at the center of scaling solutions and whatever the future holds for Ethereum. Sandeep Nailwal, the co-founder of Polygon, stated that scaling solutions are essential for the global adoption of Web 3.0 and “the network will need the benefits that the Eth 2.0 upgrade promises to offer.”
He further stated,
However, to scale for a new wave of decentralized applications (DApps), it’s going to take a lot more, and it’s looking like layer-two solutions may be the only answer.
MATIC price embarks on a bull run
MATIC price is currently experiencing a slowdown after rallying nearly 25% on October 28. However, this ascent shattered a crucial resistance barrier at $1.73, which has prevented Polygon from going higher thrice for nearly five months.
This uptrend marks the breakout from the ascending triangle pattern that forecasts 150% gains for MATIC price. However, this advance will not be easy, as the Polygon price is stuck between the $2.07 and $2.21 barriers.
Moreover, the Momentum Reversal Indicator (MRI) has flashed a red ‘one’ sell signal. This technical formation forecasts a one-to-four candlestick correction, which seems to be playing out.
Therefore, MATIC price needs to flip $2.21 into a support level to confirm the start of a new leg-up that not only propels Polygon to its previous all-time high at $2.69 but also sets the stage for a new one at $4.32.
MATIC/USDT 1-day chart
While things are looking up for MATIC price, a failure to slice through $2.21 could knock it down to retest the $1.73 support level. While the buyers can make a comeback here, a breakdown leading to a decisive close below $1.57 will invalidate the bullish thesis.
In this situation, MATIC price could head lower to retest the $1.46.
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