Polygon has performed well in the past few days, even as other cryptos tanked. From an all-time high of $2.7538, MATIC is now trading at $1.9545. This effectively places among the biggest cryptocurrencies in the world. It is now ranked number 15th.
The Polygon project enables developers to build decentralised applications and organisations. It is designed to overcome the challenges of Ethereum, like low speed and high transaction costs. Therefore, Polygon seeks to enable developers to scale their decentralised apps that are built on the Ethereum network. An impressive number of developers have embraced the project. Curve Finance and Aave have, for instance, are using the platform to develop polygon based apps.
DeFi Llama estimates that there are more than 130 projects with a combined value of more than $5 billion that are built using polygon.
The recent acquisition of zero-knowledge (zk) has rallied its price as investors become more bullish. The investors announced the acquisition of Mir in a $400 million deal. The allocation of $1 billion to zk for scaling cryptography is a testament to the big ambitions of its investors. Furthermore, the merger with Hermez leaves no doubt about its growth plans.
Technical analysis
Source – TradingView
The chart shows a bullish sentiment in the past few months. Hence the price has risen above the ascending trendline but below the key resistance level at $2.75. The price has also risen slightly above the 25-day and 50-day moving averages. The MACD has moved slightly above the neutral level. This means the price is likely to have a bullish breakout as investors target the $3 psychological level. Alternatively, the price could fall below the ascending trendline, which makes the previous prediction invalid.