The beginning of the 2023 year has been very successful for Polygon (MATIC), and the price of this crypto added more than 100% to its value in the period from January 01 to February 18.
Since then, the price of MATIC has continued to move in a downtrend, and bears continue to control the price movement.
Positive information is that there has been an increase in the number of transactions in the last two weeks for MATIC, which is connected with the news that Google Cloud become a node validator on the Polygon network. But where is the price of MATIC going next, and what can we expect from the rest of October 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 provides a solution to some of the scalability and usability issues facing Ethereum
- 2 Google Cloud has become a node validator on the Polygon network
- 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 provides a solution to some of the scalability and usability issues facing Ethereum
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.
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.
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 MATIC price almost reached $0.90 on July 13, 2023, when it seemed that the price had begun a new bullish trend. However, the price has fallen since then, and MATIC is still unable to stabilize above $0.60.
Positive information is that there has been an increase in the number of transactions for MATIC in the last two weeks, which usually indicates that investors are getting confidence in the underlying coin’s short-term price prospects. One of the reasons behind this spike in trading activity is connected with the news that Google Cloud became a node validator on the Polygon network.
Google Cloud has become a node validator on the Polygon network
In a September 29 statement on X, Polygon announced that Google Cloud had joined its ranks as a decentralized validator and highlighted that the infrastructure powering Google’s flagship products like YouTube is now helping to fortify its protocol. Polygon described Google Cloud as a “high-quality, trusted, security-minded validator” that will verify transactions and enhance the security of Heimdall, Bor, and Polygon PoS users. This addition will further help to bolster the network’s credibility and drive adoption.
On the other side, Google Cloud emphasized its commitment to contributing to the collective security, governance, and decentralization of the layer2 network. This news has undoubtedly boosted confidence in the MATIC, and it is important to mention that on-chain data showed that the Polygon network recorded almost seventy large transactions on October 1, 2023 (above $100 000), the highest level of whale trading activity registered since September 7.
The fact that Google became a node validator will bode well for the Polygon in the long term, and if the Google Cloud partnership improves network demand as anticipated, the Polygon ecosystem could grow even further and increase the price of MATIC. Polygon is a promising project, but investors should consider that MATIC is highly volatile, and the wider dynamics of the cryptocurrency market also play an important role in determining the price of MATIC.
Market conditions can change rapidly, and staying informed and employing risk management strategies are crucial when navigating the cryptocurrency market. The U.S. Securities and Exchange Commission (SEC) decisions, 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.
Technical analysis for Polygon (MATIC)
MATIC has weakened from $1.56 to $0.50 since February 18, 2023, and the current price stands at $0.52. On the chart below, I marked the trendline, and as long the price of MATIC is below this trendline, we can’t talk about a trend reversal, and the price of MATIC remains in the SELL-ZONE.
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 understand where the price could move. MATIC remains under pressure, but if the price advances above the resistance that stands at $0.70, the next target could be an important resistance level at $0.90. The strong support level is $0.50, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.45. If the price drops below $0.40, which also represents an important support level, the next target could be located around $0.30.
What speaks for the rise in the Polygon (MATIC) price
There has been an increase in the number of transactions in the last two weeks for MATIC, which is connected with the news that Google Cloud became a node validator on the Polygon network. 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 $0.50 support is very important, but moving above $0.70 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 $0.50, and if the price falls below this level, the next target could be $0.45. The price of MATIC is also correlated with the price of Bitcoin, and if the price of Bitcoin drops again below the $27000 price level, that would certainly have a negative influence on the price of MATIC.
What do analysts and experts say?
Polygon recently announced that Google Cloud had joined its ranks as a decentralized validator and highlighted that the infrastructure powering Google’s flagship products like YouTube is now helping to fortify its protocol. 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 cryptocurrency market has historically been known for its volatility, and while efforts were being made to stabilize the market, fluctuations are still expected to be a common occurrence. There are expectations of “market turbulence” from looming recession concerns and macro uncertainty, while many analysts expect that the U.S. central bank could keep interest rates at restrictive levels for a longer period. The Federal Reserve signaled the possibility of one more rate hike by the end of this year, while Chair Jerome Powell said that the rate-hiking cycle will last a tad longer than many on Wall Street want.
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.