The gains were spread throughout the crypto ecosystem, with one of those that benefited the most was MATIC, native to the Polygon blockchain.
At the time of this writing, MATIC is trading at $ 1.98, accumulating a slight loss of 2.16% in the last 24 hours, but maintaining a gain of 8.66% in the last 7 days.
Its market capitalization is $ 13,890 million, thus occupying the 18th position in the Crypto Online ranking.
As the ecosystem of decentralized finance continues to grow at high speed, layer 2 solutions such as Polygon have gained more and more prominence, being one of the best alternatives to the expensive Ethereum network.
Polygon has seen a large influx of new projects in recent months, and applications migrating from ETH to offer cheaper network alternatives to its users.
Some of the latest most relevant DeFi releases on this network have been: IDEX, OpenBiSea NFT, Rainmaker Games, Jarvis Network and Harvest Finance.
In the same vein, it is worth noting that after a recent vote, Uniswap users voted to add support for the Polygon network when the V3 version of the decentralized exchange is launched.
The catalyst behind the latest price hike
Yesterday the price of MATIC rose sharply, after the issuer of listed products 21 Shares, announced the launch of a product linked to the performance of the cryptocurrency on the Euronext exchanges in Paris and Amsterdam.
In September another related product was launched, called the Osprey Polygon Trust.
These news would be talking about the interest of institutional investors, for cryptocurrencies that offer layer 2 solutions, while the Ethereum congestion continues to generate problems related to high operating fees.
Polygon Technical Analysis (Matic)
On the daily chart MATIC vs USD we see that the price recently recovered its short-term uptrend.
Yesterday the price made a small push and came to spread today. However, a supply zone near $ 2.00 generated resistance.
We are now seeing a pullback in the making, but because the trend is bullish, we are likely to see further gains soon.
MATIC vs USDT daily chart. Source: TradingView.
Analysis and forecast
On the weekly Polygon price chart (MATIC) we see a very bullish outlook.
The price has been closing in on a large bullish pennant, a chartist figure that indicates a break from the trend for its subsequent resumption.
Right now MATIC is challenging the horizontal resistance outlining this figure ($ 2.00), and although even traversing it it would still have a larger supply zone left ahead, it would be a good first sign of a trend resumption.
If the trend is resumed, which is the most likely, then the closest target would be to hit $ 3.66. Higher the next would be $ 4.58.
To think about selling, the support at $ 1.59 must be crossed.
Polygon Analysis and Forecast (MATIC). Source: TradingView.
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