MATIC, the ticker for the cryptocurrency that powers the layer-2 Ethereum scaling solution Polygon, has been pulling back sharply in the last few days, after becoming overbought according to the 14-Day Relative Strength Index earlier this month. That coincided with when MATIC hit fresh multi-month highs in the $1.57 area, with the cryptocurrency now around 15% lower near $1.34. For now, MATIC is holding to the north of its 21-Day Moving Average (DMA) and the resistance-turned-support area around $1.30.
Crypto Experts Give Their Price Predictions
According to popular YouTube channel Altcoin Buzz noted the impressive growth recently seen in the Polygon ecosystem – earlier this week, Polygon managed to surpass Solana in terms of daily NFT sales (by USD volume), ranking as the second highest that day after only Ethereum, according to Cryptoslam.io. In the last seven days, Polygon has netted a total of nearly $7.5 million in NFT sales, ranking as the third-highest blockchain.
And that is before NFT trading platform Y00ts has even deployed on the Polygon protocol, Altcoin Buzz quoted Polygon’s co-founder as pointing out. Massive growth in the Polygon ecosystem is evident in other metrics. According to data presented by Token Terminal, daily fees have also surged, hitting a high of nearly $350,000 earlier this month, up in the region of 10x from earlier yearly levels.
That jump in fees means that Polygon is now looking as cheap as it has all year based on the circulating market capitalization/fees ratio. The ratio was last around 215, down from earlier yearly highs above 500. That could encourage bulls to continue loading up on Polygon and keep the cryptocurrency moving higher within the confines of the bullish trend channel that has been in play since the start of the year.
If MATIC does find support within the bullish trend channel, a quick return to earlier monthly highs in then $1.56 area are likely. With all the major moving averages surging higher, Polygon growth numbers continuing to impress and broader cryptocurrency markets continuing to look healthy this year, despite the most recent pullback, MATIC bulls remains confident that a retest of late March/early April 2022 highs is a possibility. Price predictions thus remains bullish.
Is It Too Late to Buy MATIC?
Asking whether it’s too late to buy an asset is never the right question. The right question is whether an asset should be bought or not. And that depends on how an investor judges its long-term price performance outlook.
If based on your own research, you think MATIC presents a good risk-reward at current prices and as likely to rise substantially in price in the current years, it is probably worth buying some. That’s regardless of the token’s recent performance. If you don’t deem MATIC as presenting a good risk-reward, then stay away.
MATIC Alternatives to Consider
MATIC’s near-term outlook is looking fairly bullish. But traders looking for quick gains might want to consider other high-potential tokens, such as those being sold in pre-sale by promising up-and-coming crypto projects. We’ve reviewed some of the best candidates in this list of the top 15 cryptocurrencies for 2023, as analyzed by the Cryptonews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.