- Polygon network announced that it would form a decentralized autonomous organization (DAO).
- Polygon announced the first-ever merger of two crypto tokens, MATIC and HEZ.
- Forex trading participants may look for a buy trade above the $1.5550 level to the target of $1.6500 and $1.7153.
On Friday, the MATIC/USD soared to the $1.5010 level, adding +5.42% so far. The day before, the pair closed at $1.46980 after placing a high of $1.46980 and a low of $1.30051. After dropping for three consecutive sessions, MATIC/USD surged and moved higher on board. If you are wondering what to expect and how to buy Matic, let’s find out below…
MATIC and HEZ Merger Underpins MATIC/USD
Recently, Polygon announced the first-ever merger of two crypto tokens, MATIC and HEZ. The Ethereum-scaling project Polygon Network token MATIC acquired the Hermez Network token HEZ for $250 million on August 13.
It was the first full-blown kind of merger of two tokens. Therefore, all the components of the Hermez project, including technology, live solutions, team, and the HEZ token itself, will be integrated into the Polygon ecosystem.
According to Polygon, Hermez will be fully merged with Polygon, and the name will be “Polygon Hermez.” The 26 members of staff who belonged to Hermez will also join the team at Polygon. This merger was part of Polygon’s network expansion plan into zero-knowledge proof. After this news, the price of MATIC, the Polygon token, started increasing and reached its highest in two months, above $1.55.
MATIC Reaches Its Multi-month Highest Level of $1.5450
After reaching its multi-month highest level, MATIC found some resistance at $1.55. Therefore, the pair has started facing a sell-off mainly because of profit-taking and the prevailing bearish market trend.
After declining continuously for at least 3 days, MATIC reversed its course on Friday and retrieved its bullish stance on the back of another positive development surrounding its network.
The Decentralized Autonomous Organization (DAO) Boosts MATIC/USD
The Polygon network announced that it would form a decentralized autonomous organization (DAO) for all of its community members and the projects in DeFi. The plan was to create committees to promote discussion between projects, including QuickSwap, Sushi, and AAVE, along with others, to bring DeFi to the subsequent million users.
According to the announcement, the growth of the Polygon ecosystem will make the position of committee members stronger. Hence, it will allow them to have a front-seat opportunity to increase cross-collaboration for their projects.
The DAO could offer a solution to scale projects on the software development kits and the benefit of allowing anyone to build tools, integrations, and projects on Layer 2 rollups. This news also added further gains to MATIC/USD and pushed its prices higher on Thursday.
Matic Price Prediction – Technical Levels
Support Resistance
1.35694 1.52623
1.24408 1.58266
1.8765 1.69552
Pivot Point: 1.41337
MATIC/USD Retests 1.5450 Resistance – How to Buy MATIC?
The Matic price prediction is strongly bullish above an intraday pivot point level of 1.41337. On the 3 hour timeframe, the 50 day EMA (Exponential Moving Average – Red Line) extends support at 1.4500. Since the MATIC/USD has crossed above this level, the chances of a bullish trend remain pretty solid.
On the 3 hour chart, the pair has formed an ascending triangle pattern extending resistance at the 1.5465 level. A bullish crossover at the 1.5468 level could drive another round of buying until the 1.7153 level. Typically, the ascending triangle pattern breakouts on the higher side; therefore, we should keep a close eye on the 1.5468 level to capture a quick buy trade.
Additionally, the MATIC/USD price is closing above 50 EMA, supporting it at the 1.4500 area. That’s another bullish signal for the altcoin. Lastly, the Stochastic RSI indicator is entering the overbought zone, implying bulls are exhausted. Therefore, the failure to break and settle over $1.5468 could trigger profit-taking in the MATIC/USD pair.
With that being said, the MATIC/USD’s immediate support prevails at $1.3717, which has been extended by an upward trendline. Moreover, the breakout of the $1.3717 level could trigger additional selling until the $1.2720 level.
Therefore, forex trading participants may look for a buy trade above the $1.5550 level to the target of $1.6500 and $1.7153. Alternatively, we may see a selling trend upon failure to break above the $1.5500 level. All the best.
How to Buy Matic?
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