Polygon (MATIC) has advanced from $0.75 to $1.09 since January 08, 2024, and the current price stands at $0.87.
Positive information is that the U.S. Securities and Exchange Commission (SEC) granted approval last week for the listing and trading of 11 spot bitcoin exchange-traded funds (ETFs) on U.S. stock exchanges.
In a historic move after years of anticipation and regulatory hurdles, the approved spot bitcoin ETFs are expected to start trading Thursday on NYSE Arca, Nasdaq, and Cboe BZX Exchange. But where is the price of MATIC going next, and what can we expect from the rest of January 2024?
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’s popularity is on the rise
- 2 The SEC has approved 11 spot Bitcoin ETF applications
- 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’s popularity is on the rise
Polygon 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.
Numerous blockchain protocols impose restrictions on block size, whereas smart contract platforms commonly make trade-offs in decentralization to enhance transaction speeds. It’s crucial to note that Polygon addresses challenges linked to blockchains and is dedicated to enhancing the accessibility of decentralized finance (DeFi) for a broader user base.
MATIC is the native utility token of the Polygon, and it is used for various purposes, including staking, participating in the network’s governance, and paying transaction fees. The last several months have been very successful for MATIC, and the price of this crypto added more than 100% to its value in the period from October 19, 2023, to December 27, 2023.
Polygon’s popularity is on the rise, and the recent inclusion of Google as a node validator bodes well for its long-term prospects. If the anticipated boost in network demand from the Google Cloud partnership materializes, it could lead to further growth in the Polygon ecosystem and contribute to an increase in the price of MATIC.
The positive news is that on January 10, 2024, Polygon revealed a fresh collaboration with Nomura. Nomura is set to adopt the institutional WEB3 network built on Polygon CDK for the purpose of asset tokenization. The current price of MATIC stands at $0.87 and the fact that the U.S. Securities and Exchange Commission (SEC) granted approval last week for the listing and trading of 11 spot bitcoin exchange-traded funds (ETFs) on U.S. stock exchanges could also have a positive impact on MATIC in a near future.
The SEC has approved 11 spot Bitcoin ETF applications
More than ten years have passed since the initial filing for a spot bitcoin ETF. Following several rejections over the years, the U.S. Securities and Exchange Commission has granted approval for all 11 applications from spot bitcoin ETF issuers. This approval signifies a possible turning point for the crypto industry, potentially paving the way for easier investment by institutional investors and consumers in the largest digital asset.
The issuers are BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETP Trust, WisdomTree Bitcoin Fund, Fidelity Wise Origin Bitcoin Trust, VanEck Bitcoin Trust, Invesco Galaxy Bitcoin ETF, Valkyrie Bitcoin Fund, Hashdex Bitcoin ETF and Franklin Bitcoin ETF. Six of the ETFs will be listed on the Chicago Board Options Exchange (CBOE), three will be on the New York Stock Exchange (NYSE) and two will trade on Nasdaq.
The approved spot bitcoin ETFs are expected to start trading on Thursday and in the days ahead we could see increased volatility. The approval of a Bitcoin ETF is poised to draw greater interest from institutional investors, fostering heightened market maturity and stability. Moreover, it may spur the establishment of robust regulatory frameworks and the adoption of best practices within the cryptocurrency industry.
Technical analysis for Polygon (MATIC)
Polygon (MATIC) has advanced from $0.75 to $1.09 since January 08, 2024, and the current price stands at $0.87. The recent approval by the SEC for the listing and trading of 11 spot bitcoin exchange-traded funds (ETFs) may have a positive influence on MATIC in the coming days. As long as MATIC maintains a value above $0.80, there appears to be minimal risk of a significant sell-off.
Important support & resistance levels for Polygon (MATIC)
On this chart (the period from May 2023), I marked important support and resistance levels that can help traders understand where the price could move. MATIC has weakened from its recent highs, but if the price jumps again above $1, the next target could be resistance that stands at $1.20. The current support level is $0.80, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.75. If the price drops below 0.70, which represents an important support level, the next target could be $0.60 or even below.
What speaks for the rise in the Polygon (MATIC) price
There has been an increase in the number of transactions in the last several days for MATIC, which is connected to the fact that the SEC has approved 11 spot Bitcoin ETF applications. Growing trading activity is certainly a positive indicator for the price of MATIC and could lead to price 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 $0.80 support is very important, but moving above $1 would be crucial for the bulls to have control of the price movement.
What indicates the downfall of Polygon (MATIC)
The downfall of MATIC can be influenced by a wide range of other factors, including market sentiment, regulatory developments, technological issues, and macroeconomic trends. The strong support level for MATIC stands at $0.80, and if the price falls below this level, the next target could be $0.75. The price of MATIC is also correlated with the price of Bitcoin, and if the price of Bitcoin drops below the $40000 price level, that would certainly have a negative influence on the price of MATIC.
What do analysts and experts say?
Numerous crypto analysts have the opinion that Polygon (MATIC) is a promising project that could have a bright future, and the MATIC coin will likely continue to play a significant role in the cryptocurrency market. Crypto analysts also agree that the fact that the U.S. Securities and Exchange Commission voted on Wednesday to allow mainstream investors to buy and sell bitcoin as easily as stocks and mutual funds, could also have a positive impact on MATIC and many other cryptocurrencies.
Trading for the approved spot bitcoin ETFs is set to commence on Thursday, and in the ensuing days, we may witness heightened volatility. The approval of a Bitcoin ETF is positioned to attract more attention from institutional investors, promoting increased market maturity and stability. Additionally, it has the potential to catalyze the development of robust regulatory frameworks and the adoption of best practices within the cryptocurrency industry.
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.