Polygon (MATIC) has advanced from $0.64 to $0.89 since the beginning of July 2023, and the current price stands at $0.74. The sentiment on the cryptocurrency market remains positive for now with investors confident that the Fed might be about to kick its rate-hike habit.
The price of many cryptocurrencies also remains supported after Judge Torres ruled in favor of XRP in their case against the U.S. Securities and Exchange Commission (SEC), and it is important to say that this ruling is undoubtedly a milestone win for the crypto industry. But where is the price of MATIC is going next, and what can we expect from August 2023?
Today, Crypto Lists will discuss Polygon (MATIC) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Polygon devs propose governance changes
- 2 Encouraging greater participation
- 3 Technical analysis for Polygon (MATIC)
- 4 Important support & resistance levels for Polygon (MATIC)
- 5 What speaks for the rise in the Polygon (MATIC) price
- 6 What indicates the downfall of Polygon (MATIC)
- 7 What do analysts and experts say?
Polygon devs propose governance changes
The Polygon blockchain is a popular Layer 2 scaling solution for the Ethereum network that relies on sidechains for achieving faster and cheaper transactions. The current blockchain ecosystem is not prepared to scale to match the demands of end-user applications with mass adoption; transactions are usually very slow and have very limited throughput.
Many blockchain protocols have a limit on the block size, while smart contract platforms usually compromise on decentralization to improve transaction speeds. It is important to say that Polygon solves pain points associated with blockchains, and it has a mission to improve the accessibility of the decentralized finance (DeFi) space to more users.
The popularity of Polygon is rising; some of the biggest Web3 platforms and developers in the industry are building on Polygon, and according to the latest news, developers of Polygon Labs proposed this week a restructuring of the governance mechanism for the upcoming Polygon 2.0 roadmap.
The new governance structure would consist of three main pillars; first would be the expansion of the Polygon Improvement Proposal (PIP) framework, Second would be a System Smart Contracts Governance pillar, and third would be a Community Treasury governance mechanism.
Polygon Improvement Proposal would allow community members to research and propose upgrades that may eventually become part of protocols. The System Smart Contracts Governance pillar would facilitate upgrades for protocol changes and would be governed by the reputed members of the community.
The Community Treasury governance mechanism would support the Polygon ecosystem’s growth, and an independent Community Treasury Board will manage it.
Encouraging greater participation
The new governance structure could encourage greater participation in Polygon, attract more developers, and stimulate the ecosystem’s growth. It is essential to say that there has been a significant increase in the number of transactions at the beginning of July for MATIC, which usually indicates that investors are getting confidence in the underlying coin’s short-term price prospects.
On-chain activity, such as the number of transactions and unique addresses, is an essential metric to consider, and it is important to say when the MATIC price almost reached $0.90 on July 13, it seemed that the price had begun a new bullish trend. However, the price has fallen since then, and it is still unclear if the movement is corrective or impulsive.
MATIC is highly volatile and remains a highly risky investment, but the wider dynamics of the cryptocurrency market also play an important role in determining the price of MATIC.
The U.S. Securities and Exchange Commission (SEC) pressure, together with recession fears and aggressive monetary policy from major central banks, will continue to have a major influence on the cryptocurrency market in the weeks ahead.
The next Federal Reserve meeting is scheduled for July 26, and according to a survey from the CME Group, markets are pricing a 90% chance that Fed policymakers will raise interest rates by 25 basis points. Antoni Trenchev, co-founder and managing partner of crypto lender Nexo, added:
“If the Fed indicates it’s not done raising rates, all bets are off for crypto and other risk assets. If the Fed suggests it’s done with rate hikes, it should galvanize the bulls and reignite the bull run.”
Technical analysis for Polygon (MATIC)
Polygon (MATIC) has been in a positive mood since the beginning of July 2023, advancing from a low of $0.64 to a high of $0.89. The current price of MATIC stands at $0.74, and as long the price of MATIC is above $0.70, there is no risk of a bigger sell-off.
Important support & resistance levels for Polygon (MATIC)
On this chart (the period from April 2023), I marked important support and resistance levels that can help traders to understand where the price could move. Polygon (MATIC) has weakened from its recent highs, but if the price jumps above the resistance that stands at $0.90, the next target could be psychological resistance at $1.
The current support level is $0.70, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.65. If the price drops below $0.60, which represents an important support level, the next target could be $0.50.
What speaks for the rise in the Polygon (MATIC) price
Developers of Polygon Labs proposed this week a restructuring of the governance mechanism for the upcoming Polygon 2.0 roadmap, and according to estimates, the new governance structure could encourage greater participation in Polygon, attract more developers, and stimulates the growth of the ecosystem. G
rowing activity is certainly a positive indicator for the price of MATIC and could lead to further growth in the future, but it is also important to keep in mind that the overall sentiment on the cryptocurrency market can play a crucial role in MATIC’s price trajectory.
MATIC’s ability to maintain above $0.70 support is an encouraging sign, and it could potentially act as a strong foundation for a price bounce. A move above $0.90 would be beneficial for the bulls to remain in control of price movement.
What indicates the downfall of Polygon (MATIC)
Polygon (MATIC) has been in a positive mood since the beginning of July 2023, and when the price of MATIC almost reached $0.90 on July 13, it seemed that the price had begun a new bullish trend. However, the price has fallen back since then, and it is still not clear if the movement is corrective or impulsive.
The current support level for MATIC stands at $0.70, and if the price falls below this level, the next target could be $0.65. The price of MATIC is also correlated with the price of Bitcoin, and if the price of Bitcoin drops below the $28000 price level, that would certainly have a negative influence on the price of MATIC.
What do analysts and experts say?
Developers of Polygon Labs proposed this week a new governance structure that could encourage greater participation on Polygon, attract more developers, and stimulates the growth of the ecosystem. According to analysts, this should be a positive for the future performance of MATIC, but they also warned that the overall sentiment on the cryptocurrency market also plays a crucial role in MATIC’s price trajectory.
The good news is that the cryptocurrency market remains supported after the latest data from the U.S. showed that inflation cooled more than expected in June, which increased confidence among investors and offered reasonable hopes that the Fed might be about to kick its rate-hike habit. The Federal Reserve meeting is scheduled for July 26, and according to Antoni Trenchev, co-founder and managing partner of crypto lender Nexo, if the Fed suggests it’s done with interest rate hikes, it should reignite the bull run.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.