Polygon (MATIC), one of the top-ranking cryptocurrency, performed well on Jan. 26, as its price rose almost 17% to an intraday high of $1.825.
These gains were made possible by a synchronized rebound in the crypto market, which began on January 24th. Detail: Traders and investors poured over $250 billion into digital assets. This benefited Bitcoin (BTC), Ether(ETH) and many other participants.
Performance of the top-fifteen cryptocurrency in the past 15 days. Source: TradingView
Polygon, which is a secondary scaling solution to the Ethereum blockchain, also profited from the rebound in crypto markets. MATIC, the native token of Polygon, saw its value rise from $9.77 billion on January 24, to $13.58 billion just two days later.
Its price increased from $1.312 to $1.855 in the same time period — almost 40% in three days.
Fed meeting and high-profile hires
This latest round of buying in the Polygon Market occurred ahead of the Federal Reserve’s announcement on its interest rate hike scheduled for the afternoon of January 26.
Detail: Cryptocurrencies have also experienced several whipsaws over recent months due to expectations that the U.S. central banking would initiate a series interest rate increases to combat inflation. Stock markets also suffered from the Fed’s shrinking balance sheets and higher rates.
Pictet Asset Management’s chief strategist, Luca Paolini, said that people might expect that recent turmoil in stock markets and a growing rift between Russia and Ukraine that has brought in NATO allies’ attention may cause the Fed to tone down its rate-hike rhetorics.
Waiting for FED to speak now
— David Gokhtein (@davidgokhtein), January 26, 2022
However, Polygon still managed to beat top competitors like Bitcoin and Ethereum in intraday gains. It appears that Polygon was able to do this because of a high-profile hire.
Cointelegraph reported that YouTube’s head for gaming, Ryan Watts left the streaming company to join Polygon Studios. Polygon Studios is a gaming and nonfungible token, (NFT), which was backed by the $100 million fund named layer-2 protocol.
Related: Altcoins record a 40% gain following the entry of Bitcoin and the relief rally in crypto markets
This news seemed to have boosted investor interest in MATIC, causing it to perform better than other large-cap cryptocurrency.
Huge news for $matic https://t.co/uNFO6MtddN
Lark Davis (@TheCryptoLark), January 25, 2022
Key support levels held
MATIC’s sharp rebound pushed the price above its 200-day exponential moving mean (200-day EMA, the blue wave in below chart), which is significant because it limits the market’s downside bias.
Chart of daily MATIC/USD prices. Source: TradingView
MATIC bulls tried to reclaim support 200-day EMA on Jan. 25, almost a week after it was lost. The price action around the blue wave was very similar to that of the July-August period last summer, when closing above it had resulted in a price rally of 200% or more.
The fractal demonstrates strong buying sentiment among MATIC traders located near the 200-day EMA.
If the price stays above the support, the likelihood that it will continue its uptrend is higher. However, bullish momentum is at risk of exhaustion near MATIC’s descending trendline resistance as shown in this chart.
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