Polygon is trading above a critical level, which has supported the Layer 1 token since July 2022. Bulls are attempting a recovery and the latest development of a partnership between Mirae Asset Securities and Polygon Labs is the fuel they need to achieve this.
South Korea’s largest financial group Mirae Asset Securities has announced its partnership with Ethereum scaling solution Polygon Labs to develop a tokenized securities network and accelerate the adoption of Web3 technologies.
The partnership aims to leverage Polygon’s scalable blockchain infrastructure to enable seamless tokenization of assets and enhance the efficiency of financial transactions.
Polygon Labs will be a technical consultant in the Mirae Asset Security Token Working Group, which is working to create infrastructure to issue, exchange, and distribute tokenized securities, the asset manager said in the press release.
Other companies in the working group include Coin Plug, Linger Studio, Hana Financial and SK Telecom’s security token consortium, Next Finance Initiative (NFI).
The move is expected to bolster Mirae Asset’s position in the rapidly evolving digital asset space and consolidate Polygon’s presence in the Asian market with over $500 billion in assets under management.
Traders expect that as this news reaches investors, their interest in MATIC will be sparked as they buy more on prospects of a future price increase.
MATIC Bulls Eye a Return to $0.7
Polygon price trades within a significant demand zone at $0.543. Note that this is a very significant defense line for MATIC as the price has not traded below this level for more than 14 months now.
The level has been a great launching pad for the altcoin which has bounced off it twice below, recording amazing rallies. As can be seen from the chart below, MATIC lifted off this level in mid-July 2022, displaying an impressive 95% rally toward $1.055.
The second time was more recently in mid-June when after consolidating above the said level for more than one week, Polygon price rose 67% toward the $0.90 psychological level.
At the time of writing, MATIC was exchanging hands at $0.563 and sat on the said level at $0.540 which offered immediate support. Increased buying from this demand zone could see the altcoin rise higher to produce a daily candlestick close above the 50-day Simple Moving Average (SMA) at $0.558.
Additional barriers are found at the $0.636 and $0.674 levels, where the 100-day and 200-day SMAs sit respectively. Shattering these hurdles would see MATIC price rise toward the $0.70 supply one, representing a 30% uptick from the current level.
MATIC/USD Daily Chart
This positive outlook was supported by the upward trajectory displayed by the Stochastic RSI. The price strength at 81 in the overbought region reinforced the buyer’s grip on the price at the said level.
In addition, the Moving Average Convergence Divergence (MACD) indicator was facing upwards. The call to buy MATIC which was sent on Aug. 28 when the MACD line (blue) crossed above the signal line (orange) was still in play. This suggested that the prevailing market conditions favored the upside.
On the downside, the SMAs were facing downwards and the MACD was positioned in the negative region below the neutral line. The Stochastic RSI showed that Polygon was overbought. This pointed to the continuation of the downtrend if the support at $0.54 is lost.
If this happens MATIC could move lower first toward the $0.50 psychological level and later the $0.40 demand zone.
Source: https://www.analyticsinsight.net/polygon-price-prediction-can-mirae-asset-securities-partnership-propel-matic-30-higher/