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Polygon’s token is up 27% in 7 days
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The network recently achieved carbon neutrality
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MATIC, Native Token, Trying to Find Support After Resistance
In this bear crypto market, it is challenging to find a token with double digit returns in a week. However, MATIC/USD has gained 27% over that period. The returns do not imply that the cryptocurrency is now in bullish momentum. However, it does indicate that investors, especially those trading in the short term, should take note.
Polygon is a layer-2 Ethereum scaling solution network. It aims to offer cost-effective and fast transactions on the Ethereum network using sidechains. MATIC is the native token on the Polygon network. DeFi applications find Polygon useful because it helps them avoid costly fees on the core Ethereum network. Some DeFi applications that support polygons include Curve Finance and Ave.
The recent gains in MATIC/USD are largely fundamentally driven. About a week ago, the network announced that it had achieved carbon neutrality. Polygon said it partnered with ClimaDao as part of its Green Manifesto. The news took a swift turn as the environmental impact of crypto became headlines. To meet the goal, the network invested $400,000 in carbon credits.
MATIC/USD slides after hitting resistance
Source – TradingView
Looking at the lower time frame, MATIC is bearish after hitting the $0.62 resistance area. This level coincides with an overbought position after the latest news. However, recent gains have raised new hopes that MATIC’s recovery is progressing well. We believe that investors are not yet done with MATIC, and a price recovery could happen soon. Investors should watch the $0.49 and $0.39 lows for price action buy signals. If the cryptocurrency successfully clears $0.62, the cryptocurrency will gain a sustainable bullish momentum.
summary
Polygon is a layer-2 scaling solution on Ethereum. The network recently achieved carbon neutrality, a swift move to MATIC. The token is currently in retracement.