What is MATIC?
Polygon (previously Matic Network) is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications.
Polygon effectively transforms Ethereum into a full-fledged multi-chain system (aka Internet of Blockchains). This multi-chain system is akin to other ones such as Polkadot, Cosmos, Avalanche etc. with the advantages of Ethereum’s security, vibrant ecosystem and openness.
The $MATIC token will continue to exist and will play an increasingly important role, securing the system and enabling governance.
Polygon (formerly Matic Network) is a Layer 2 scaling solution backed by Binance and Coinbase. The project seeks to stimulate mass adoption of cryptocurrencies by resolving the problems of scalability on many blockchains. – CMC
Certainly not the only Cryptocurrency that has changed names but one of the few that is still referenced by its old name as opposed to its new name (Polygon). MATIC is considered an L2 as opposed to an L1. An L1 is the underlying Blockchain – think Bitcoin, Ethereum, Cardano, Solana, Fantom, etc. L2 on the other hand is a Layer that sits on top of the Blockchain. In the case of MATIC, it sits on top of Ethereum. Anyone who has interacted with ETH lately knows the Gas fees are insane. Using MATIC on top of ETH and converting ETH to WETH (Wrapped ETH) allows you to use the MATIC gas fees instead, which are only a few pennies to dollars at the most.
MATIC Price Action
MATIC made a brand new ATH back in May at a price level of $2.70. Earlier today MATIC pushed to $2.709. This may not seem like much but we have to consider that after the ATH in May, MATIC dropped 77% down to $0.621. As you can see from the picture above, MATIC has been crawling its way back to the top and today marks the day that MATIC has reached its previous ATH.
The journey for MATIC took 157 Days but the good news is that it may just be the beginning – all over again…
The first area of price discovery resistance comes near $3.98. This would be about a 60% gain from the local support we tested earlier today. Because there is no overhead historical resistance, MATIC is in the hands of traders and investors to sell when they see fit. For some, that may not be for another 1000% and for others that may be 20% from where we currently are.
We use Fibonacci Extensions to help determine where other traders are likely to sell their positions for profit.
If the market is to get real Bullish and produce another leg to this massive 2021 run then we look to $6.05 as another profit taking area for traders and investors alike. This would mark a 142% gain from the local support zone we mentioned before.
This is still a little early for MATIC as we would really like to see some more volume creeping into the market but all signs point to a solid, momentum-building trend.
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