Newblock
  • News
    • Bitcoin
    • Ethereum
    • XRP
    • Solana
    • Cardano
    • Blockchain News
    • Press Releases
    • Events
  • Analysis
    • Market Analysis
    • Price analysis
  • Ranking
No Result
View All Result
  • Login
Buy crypto
Newblock
  • News
    • Bitcoin
    • Ethereum
    • XRP
    • Solana
    • Cardano
    • Blockchain News
    • Press Releases
    • Events
  • Analysis
    • Market Analysis
    • Price analysis
  • Ranking
No Result
View All Result
Newblock

Ascending channel pattern sets Polygon (MATIC) up for a potential 30% rally

January 14, 2022
in Market Analysis
410 13
0
Share on FacebookShare on Twitter

Polygon prices look poised to rise by at least 30% in the wake of a key Jan. 18 upgrade that would push a considerable portion of its native MATIC token out of circulation.

Dubbed EIP-1559, the improvement proposal originally came to light as part of Ethereum’s so-called London Hard Fork upgrade on Aug. 5. The proposal effectively started destroying, or “burning,” a part of the fees paid to miners via Ether (ETH).

Traders and investors raised their bids for Ether before and after the EIP-1559 upgrade, noting that it made Ether a deflationary asset for the first time in history. For example, a model created by Ethereum co-founder Justin Drake claimed that EIP-1559 would reduce Ether’s annual supply by 1.6 million ETH.

MATIC looks for new record highs

Polygon, which acts as a layer-two protocol built to scale Ethereum’s prevailing scalability issues, rolled out a testing implementation of EIP-1559 on Dec. 14, 2021. After the test net launch, MATIC price rallied by almost 30% to $2.35, which includes a brief run-up to its record high near $3.

MATIC/USD daily price chart. Source: TradingView

In theory, a lower supply against a rising demand would make the asset more valuable in the eyes of its bidder.

This classic economic reference has assisted in boosting demand for cryptocurrencies like Bitcoin (BTC) before. Issuance would be halved every four years against a limited supply cap of 21 million units. This begs the question, could the MATIC price rally in the same way? Mineplex co-founder Alexander Mamasidikov thinks yes.

Mamasidikov told Cointelegraph that EIP-1559 would impact MATIC price positively, adding that it could easily rally toward its current record high following the technical upgrade.

“In periods of price recovery, investors are often on the lookout for both technical and fundamental features to hang onto in order to back a coin, and Polygon brandishes both,” he said, adding:

“While Polygon remains a better version of Ethereum in terms of lower transaction costs, it is also the delight of retail investors with respect to its low price at this time when compared with Ethereum or other smart contract networks.”

What do Polygon’s technicals say?

MATIC has been trending higher inside an ascending channel pattern since July 2021, confirmed by at least two reactive highs and two reactive lows.

The token recently retested the channel’s lower trendline around $1.89 as support, a move that was followed up with a bullish retracement toward $2.50. It is now acting as resistance and the $2.50 level also turned out to be near the 1.00 Fib line near $2.44.

MATIC/USD daily price chart featuring ascending channel pattern. Source: TradingView

That being said, MATIC may attempt a break above the $2.44-resistance around the EIP-1559 upgrade on Jan. 18. The move would set itself on a course to test its interim upside target near $3, which is approximately a 30% jump.

Related: Polygon network activity spikes as NFT sales reach new height

Meanwhile, if the EIP-1559 factor plays out any longer than anticipated, MATIC price may even attempt an extended run-up toward the 1.618 Fib line around $3.52. Conversely, a rejection at $2.44 could have Polygon retest the ascending channel support for a negative breakout.

Such a move would risk invalidating the bullish setup, as discussed above. All of this is in conjunction with exposing MATIC to a correction toward $1.77 or lower.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Source link

You might also like

Hedge fund Bitcoin price

Bitcoin climbs above $41K on Wall Street open as gold dives, dollar cements highs

April 21, 2022
Bitcoin returns to test $40K

Bitcoin slides under $39K, leading some traders to forecast a weekend ‘oversold bounce’

March 5, 2022

Related News

Hedge fund Bitcoin price

Bitcoin climbs above $41K on Wall Street open as gold dives, dollar cements highs

by Editorial Team
April 21, 2022
0

Bitcoin (BTC) reclaimed $41,000 on April 14 as the first day of Western stock market trading after Easter painted a...

Bitcoin returns to test $40K

Bitcoin slides under $39K, leading some traders to forecast a weekend ‘oversold bounce’

by Editorial Team
March 5, 2022
1

March 4 saw another day of seesaw price action for Bitcoin (BTC) and the wider cryptocurrency market as the global...

Bitcoin returns to test $40K

Bitcoin returns to test $40K as macro factors pile up to squash BTC bulls

by Editorial Team
March 4, 2022
0

Bitcoin (BTC) bended to new macro pressures on March 4 after bulls failed to hold $42,000 for long. BTC/USD 1-hour...

Bitcoin accumulation phase

Analysts say bulls will aim for $48K now that Bitcoin’s ‘accumulation phase’ has begun

by Editorial Team
March 3, 2022
1

Investor sentiment across the cryptocurrency ecosystem has seen a significant shift in the positive direction over the past week, despite...

Next Post

ICON commits $200M to interoperability incentive fund

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Get daily news updates to your inbox!

Popular

  • crypto price analysis

    BTC, ETH, BNB, ADA, SOL, XRP, LUNA, DOGE, DOT, AVAX

    21678 shares
    Share 8671 Tweet 5420
  • Google Launches Blockchain Division

    5331 shares
    Share 2131 Tweet 1332
  • Microsoft Reveals Activision Purchase for $68.7 Billion as an Approach to the Metaverse

    972 shares
    Share 389 Tweet 243
  • GAIMIN Brings Blockchain and NFTs to Minecraft – Press release Bitcoin News

    957 shares
    Share 383 Tweet 239
  • Coinbase exec says major Ethereum scaling improvements coming soon

    923 shares
    Share 369 Tweet 231

Recommended

argentina crypto mining

Profitability makes crypto mining more expensive in Argentina

February 5, 2022
Cardano Records Over 20 Million Transactions Ahead of DEX Launches

Cardano Records Over 20 Million Transactions Ahead of DEX Launches

January 11, 2022
Newblock

Newblock is a blockchain news service that covers bitcoin and altcoin news, technical analysis & forecasts for bitcoin price and other altcoins.
© 2022 Newblock

Navigate Site

  • Blockchain news
  • Crypto Analysis
  • Ranking
  • Media Partnerships
  • Privacy Center
  • Contact Us
  • Donate

Follow Us

No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • XRP
    • Cardano
    • Solana
    • Blockchain News
    • Press Releases
    • Events
  • Analysis
    • Market Analysis
    • Price analysis
  • Ranking
  • Buy Crypto
  • Privacy Center
  • Contact Us
  • Donate

Newblock is a blockchain news service that covers bitcoin and altcoin news, technical analysis & forecasts for bitcoin price and other altcoins.
© 2022 Newblock

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.