Where Main Street Meets Wall Street

Polygon Eyeing Higher Levels After Testing Support – FX Leaders


Since mid-September, the number of active daily users on Polygon has been going higher. As of October 3, the number of addresses transacting on the Polygon network was 531,831, which was higher than the 472,079 on the Ethereum network on the same day.

The total number of active daily users is currently down to slightly above 450,000, but it still points to robust growth from only 214,807 on September 20.

According to Coin Briefing, users are attracted to Polygon by the upcoming mobile gaming app Arc8. The game promises to combine crypto gaming with e-sports, allowing users to compete and win GMEE tokens. The GMEE token mining activity is said to have caused an uptick in activity on Polygon.

We already know the impact that blockchain gaming has on the related crypto coins. In July, Axie Infinity rose to fresh record highs, after attracting hundreds of thousands of active daily users through its play-to-earn game. Since then, AXS/USD has risen to record highs, reaching a price above 160 on October 4, from only 15 in mid-July. 

Now, Polygon (MATIC/USD) seems to be riding on the popularity of Arc8, just like AXS/USD: 

 MATIC/USD – A 4-Hour Chart Outlook

Since the active daily users started to climb in Polygon, the cryptocurrency has been surging higher. The active daily users topped 566,000 on October 2, the same day that MATIC/USD surged past the resistance at 1.24.

From the 4-hour chart above, we can see that MATIC/USD is consolidating at the 1.24 support, which was previously acting as resistance, and it is on its way up. The crypto-token retested the support on October 4 and is currently trading at 1.328.

MATIC/USD Trade Analysis 

A look at MATIC/USD shows a potential upside from the current level or a short retrace down to the 1.24 support. With the overall crypto sentiment improving and Polygon attracting new users, I project that the crypto token will hit higher levels.

Based on the above outlook I am seeking a potential buy trade on MATIC/USD after a short retrace to 1.24 and/or if prices continue above the support level. The buy trade reflects a growing user base on Polygon, improving crypto sentiment and technical pointers.

I would target the previous levels of 1.35, 1.41 and 1.48 as my exits. However, I need to monitor the crypto sentiment and user-base on Polygon and manage the trades accordingly. Happy trading!

Source link

Leave A Reply

Your email address will not be published.