Polygon (MATIC) emerged as top-of-the-line performers amongst high-ranking cryptocurrencies on Jan. 26 as the worth rose almost 17% to achieve an intraday excessive at $1.825.
The good points surfaced amid a synchronous rebound throughout the crypto market that began on Jan. 24. Intimately, traders and merchants poured in over $250 billion throughout digital belongings, benefiting Bitcoin (BTC), Ether (ETH) and lots of others within the course of.
Polygon, a secondary scaling solution for the Ethereum blockchain, also cashed in on the crypto market rebound. The valuation of its native token, MATIC, rose from as low as $9.77 billion on Jan.24 to as high as $13.58 billion two days later.
Meanwhile, its price jumped from $1.312 to $1.825 in the same period — that’s nearly a 40% gain in just three days.
Fed meeting and high-profile hiring
The latest bout of buying in the Polygon market appeared ahead of a Federal Reserve announcement about its interest rate increase scheduled to come back on the afternoon of Jan. 26.
Intimately, cryptocurrencies have additionally been by a number of whipsaws in current months over expectations that the U.S. central financial institution would embark on a series of interest rate hikes to struggle inflation. Equally, inventory markets have suffered due to the prospect of the Fed’s shrinking steadiness sheet and better charges.
According to Luca Paolini, the chief strategist at Pictet Asset Administration, individuals could have expectations that the current turmoil within the inventory market and a rising rift between Ukraine and Russia that has drawn in NATO allies’ focus could have the Fed tone down its fee hike rhetorics.
Ready for the FED to talk immediately.
— David Gokhshtein (@davidgokhshtein) January 26, 2022
Nonetheless, Polygon managed to outperform high rivals like Bitcoin and Ethereum when it comes to intraday good points, and it seems a high-profile hiring was the core motive behind it.
As Cointelegraph reported on Jan. 25, YouTube’s head of gaming, Ryan Watts, left the streaming large to join Polygon Studios, a gaming and nonfungible token (NFT), backed by the namesake layer-2 protocol’s $100 million fund.
The information seemingly boosted traders’ urge for food for MATIC, prompting it to do higher than different large-cap cryptocurrencies.
— Lark Davis (@TheCryptoLark) January 25, 2022
Key assist ranges held
MATIC’s sharp rebound positioned the worth again above its 200-day exponential transferring common (200-day EMA; the blue wave within the chart beneath), a stage vital for its function in limiting the market’s draw back bias.
On Jan. 25, MATIC bulls tried to reclaim the 200-day EMA as assist nearly per week after dropping it. The drop-and-bounce across the blue wave appeared similar to the worth motion within the July–August interval final yr, whereby closing above it had led to a 200%-plus value rally.
The fractal exhibits sturdy shopping for sentiment amongst MATIC merchants close to the 200-day EMA.
Due to this fact, ought to the worth keep above the assist, its probability of continuous its uptrend seems greater. Nonetheless, the bullish momentum dangers exhaustion close to MATIC’s descending trendline resistance, as proven within the chart above.
The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, you must conduct your individual analysis when making a call.