• Mon. Jun 17th, 2024

Polygon’s MATIC remains attractive, but a key hurdle remains

  • Robinhood announced MATIC transactions on Polygon in addition to Ethereum

  • The support increases liquidity for MATIC token

  • MATIC gains in the past one week are 10%

Talk of making important headlines and defying market sentiment. Polygon’s MATIC/USD is a cryptocurrency to watch whenever one is looking for a good investment. The Ethereum Layer-2 scaling solution has proved to be a reliable blockchain. 

On CoinMarketCap, MATIC has registered more than 10% gains in the past week. Other cryptocurrencies have negligible gains, while others remain in the bear zone. The gains reflect confidence in Polygon and the increasing utility of its native token MATIC.

On August 31, Robinhood announced that users could transact with MATIC on the polygon network. It is additional support to Ethereum, with Robinhood saying more cryptos are coming soon. The support will raise MATIC liquidity and boost the price. The brokerage firm said the addition of MATIC was attributed to the huge fees on Ethereum. 

MATIC is trapped by the $1 resistance as price makes a comeback

Source: TradingView

The weekly chart is the true barometer to illustrate MATIC’s price action. In the weekly chart, it can be seen that MATIC is trapped below the $1 resistance. The price is bullish after the latest retracement but is facing some bear pressure. The bear pressure could be a result of the weak crypto market sentiment.

Concluding thoughts

While Polygon’s MATIC has strong fundamentals, weak market sentiment is a bear trigger. The price faces a key hurdle at $1 while the bottom is at $0.6. While we believe MATIC has room to go higher, caution should be exercised as price battles $1. The $0.78 is short-term support that the price could also slide if a breakout fails at $1. We urge investors to buy when the price crosses $1 or buy now for a long-term hold.

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