Is Polygon’s (MATIC/USD) one of the most attractive cryptocurrencies below $1?
Probably yes, given the stability it has exhibited amid the bear market. After an inflation-inspired flash crash on Thursday, MATIC is back to winning ways. As of press time, MATIC had made an intra-day recovery of 11%. The gains were widespread across the crypto sector. However, the token’s gains were noticeable and looking likely to continue.
Once again, Polygon is making positive headlines with the latest news. As CoinJournal reported, Polygon will power the first-ever blockchain-based enforcement portal for the Indian police. The news is encouraging and shows governments are slowly embracing blockchain for critical missions. The blockchain solution is meant to help curb corruption and power complaint mismanagement within the Indian police force.
With Polygon at the centre of the important development, it explains why MATIC rose strongly on Friday. In a sector awash with negative sentiment, the development sparked social interest in Polygon. The cryptocurrency saw increased mentions on the social trading platform Stocktwits.
Besides, we all know that MATIC is now part of Grayscale’s large-cap crypto fund. The addition was done about a week ago as part of the asset manager’s quarterly rebalancing. The addition increases investors’ exposure to cryptocurrencies, which boosts the liquidity of the tokens. The positive development has been a plus for MATIC. But is the price bullish now?
MATIC jumps from a bullish pin bar at the support
Source – TradingView
On the technical front, MATIC formed a bullish pin bar at the $0.77 support. That was after the price crashed below the level following hot inflation numbers.
Ideally, pin bars forming at key resistance or support zones are reversal signals. They communicate a price rejection on the side of the candlestick’s long wick (pin). Its appearance at the support suggests that bulls have successfully defended $0.77.
Should we expect MATIC to go higher?
The bullish pin bar implies that a higher price looms for MATIC. The recent surges confirm that. Nonetheless, for a sustained surge, MATIC must overcome a descending trendline shown in the daily chart. Potentially, a consolidation could follow before a breakout occurs.