Polygon (MATIC) emerged as one of the best performers among the higher-ranked cryptocurrency on Wednesday, as the price rose nearly 17% to an intraday high of $1.825.
The gains came amid a synchronous rebound in the crypto market that began on January 24. By extension, investors and traders poured over $250 billion into the digital asset, benefiting Bitcoin (BTC), Ether (ETH) and many others in the process.
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 $9.77 billion on January 24 to $13.58 billion two days later.
Meanwhile, its price jumped from $1.312 to $1.825 in the same period – an increase of nearly 40% in just three days.
Fed Meetings and High-Profile Hiring
The latest bout of buying appeared in the Polygon market ahead of the Federal Reserve’s announcement about an interest rate hike coming Wednesday afternoon.
By extension, the cryptocurrency has also gone through several whipsaws in recent months, with hopes that the US central bank will launch a series of interest rate hikes to fight inflation. Similarly, stock markets have suffered because of the Fed’s shrinking balance sheet and the prospect of higher rates.
According to Luca Paolini, chief strategist at Pictet Asset Management, people may expect that the recent turmoil in the stock market and the growing rift between Ukraine and Russia that has attracted the attention of NATO allies will prompt the Fed to tone down its rate hike rhetoric. can reduce. ,
Waiting for the Fed to speak today.
— david gokhshtein (@davidgokhshtein) 26 January 2022
Nonetheless, Polygon managed to beat top rivals such as Bitcoin and Ethereum in terms of intraday gains, and it appears that a high-profile hiring was behind it.
As Cointelegraph reported on Tuesday, YouTube’s head of gaming, Ryan Watts, has left the streaming giant to join Polygon Studios, a gaming and non-fungible token (NFT) funded by $100 of the Layer-2 protocol. Million Fund.
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The news piqued investor appetite for MATIC, prompting it to outperform other large-cap cryptocurrencies.
great news for $matic https://t.co/uNFO6MtddN
— Lark Davis (@TheCryptoLark) 25 January 2022
key support level held
MATIC’s sharp rally placed the price above its 200-day exponential moving average (200-day EMA; blue wave in the chart below), an important level for its role in limiting the downside of the market.
On Wednesday, MATIC bulls attempted to retest the 200-day EMA as support, almost a week after losing it. The drop-and-bounce around the Blue Wave was similar to price action in the July-August period last year, with more than 200% price rally from closing above it.
The fractal near the 200-days EMA is showing strong buying sentiment among MATIC traders.
Therefore, if the price stays above the support, it is more likely to continue the uptrend. Nevertheless, as shown in the chart above, bullish momentum runs the risk of exhaustion near MATIC’s descending trendline resistance.
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