On January 26, Polygon (MATIC) emerged as one of the best-performing cryptocurrencies, rising almost 17% to reach an intraday high of $ 1,825.
The profit was achieved on the basis of a synchronous improvement in the cryptocurrency market, which started on 24 January. In particular, investors and traders have invested more than $ 250 billion in digital assets, leveraging Bitcoin (BTC), Ether (ETH), and many other cryptocurrencies. process.
The performance of the 15 best cryptocurrencies in the last 15 days. Source: Trading View
Polygon, the secondary expansion solution for the Ethereum blockchain, has benefited from the recovery of the cryptocurrency market. The valuation of the original MATIC token rose from $ 9.77 billion on January 24 to $ 13.58 billion two days later.
Meanwhile, the price jumped from $ 1,312 to $ 1,825 in the same period, up almost 40% in just three days.
Federal Reserve and high-level recruitment meeting
Another increase in purchases took place in the Polygon market ahead of the Federal Reserve’s announcement of an interest rate increase planned for the afternoon of 26 January.
In particular, the cryptocurrency has also undergone several releases in recent months due to expectations that the US Federal Reserve will initiate a series of rate hikes to combat inflation. Similarly, the stock markets have been hit by the possibility that the Fed’s balance sheet will shrink and interest rate increases.
According to Luca Paolini, chief strategist at Pictet Asset Management, people can expect that the recent stock market turmoil and the growing conflict between Ukraine and Russia, which have attracted the attention of NATO allies, could cause the Federal Reserve to cut interest rates. Rhetorical.
However, Polygon has managed to outperform major competitors such as Bitcoin and Ethereum in terms of daily profits, and it seems that the high employment rate was the main reason for this.
As Cointelegraph reported on January 25, gaming chief YouTube chief Ryan Watts left the streaming giant to join Polygon Studios, a $ 100 million inseparable gaming token (NFT) backed by a $ 100 million Team 2 protocol fund of the same name. .
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The news seems to have increased investor interest in MATIC, which makes it better than other major cryptocurrencies.
Important support levels stored
The sharp rise in MATIC brought the price back above its 200-day exponential moving average (200-day exponential moving average; blue wave in the chart below), a level that is important for its role in limiting the market’s bearish bias.
MATIC / USD daily chart. Source: Trading View
On January 25, the MATIC bulls tried to regain the 200-day moving average in support almost a week after losing it. The fall and bounce around the blue wave looked very much like the price movement in July and August last year, when the closure over it sent prices up by 200%.
The fractal shows strong buying sentiment among MATIC traders close to the 200-day moving average.
Therefore, if the price remains above the support level, the trend is more likely to continue. However, the bullish momentum is in danger of ending near the resistance of the MATIC downtrend line, as shown in the chart above.