Polygon (MATIC) could advance even more in the ongoing bull market, but the risk remains high

By: Stanko Iliev
Stanko Iliev
Stanko dedicates himself to providing investors with relevant information they can use to make investment decisions. He loves the… read more.
on Apr 29, 2021
  • Polygon (MATIC) price has exploded since 26th April
  • Polygon has launched a $100 million fund to improve the accessibility of DeFi
  • $0.50 represents a strong support level

Polygon (MATIC) has advanced from $0.37 above $0.90 since 26th April, and the current price stands around $0.85.

Fundamental analysis: Polygon has launched a $100 million fund to improve the accessibility of DeFi

Polygon (MATIC) has exploded since 26th April, and this cryptocurrency continues to trade in a bull market. The daily volume of MATIC remains high, and if this positive trend continues, this crypto could be one of the best performers in the upcoming days.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Polygon is a platform for Ethereum scaling and infrastructure development, and according to the latest news, it has launched a $100 million fund to improve the accessibility of the decentralized finance (DeFi) space to more users.

“The current blockchain ecosystem is not prepared to scale as per the demand, and we aim to change that by simplifying the interaction between users and the decentralized world. We want to make interacting with the decentralized ecosystem so easy that anyone can do so without worrying about the complexity of the system,” the Polygon team reported.

The issues of slow block confirmations and high gas fees need to be solved, and Polygon solves this by using an adapted version of the Plasma framework that offers a solution for quicker and extremely low-cost transactions. Faster transactions, lower fees, and DeFiforAll fund fuel Polygon’s (MATIC) adoption in the DeFi space, the most rapidly growing market in the crypto industry.

It is important to mention that several popular DeFi projects have already migrated to Polygon, bringing their client base to this network. This happened with Aave, Curve, and decentralized exchange (DEX) for trading stablecoins.

Polygon has tremendous growth in its user activity in recent weeks, and it even allows developers to use their own tokens as settlement fees to run the network. Global adoption, a larger user base, and decentralized development are the main characteristic of this network; still, investors in Polygon (MATIC) should have in mind that this is a very risky cryptocurrency.

Technical analysis: $0.50 represents a strong support level

This cryptocurrency has made a big jump in a short period and, if you decide to buy Polygon (MATIC), you should consider that the price could also weaken from the current levels.

Data source: tradingview.com

The critical support levels are $0.70 and $0.50; $0.90 and $1 represent the current resistance levels. If the price jumps again above $0.9, it would be a signal to trade Polygon (MATIC), and the next price target could be around $1.

On the other side, if the price falls below $0.5, it would be a strong “sell” signal and probably a trend reversal sign.

Summary

Polygon (MATIC) has exploded since 26th April, and this cryptocurrency continues to trade in a bull market. Polygon has launched a $100 million fund to improve the accessibility of DeFi, and several popular DeFi projects have already migrated to Polygon, bringing their client base to this network.

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

  1. Etoro, trusted by over 13m users worldwide. Register here >
  2. Capital.com, simple, easy to use and regulated. Register here >