- Polygon (MATIC) price started the week with positive gains.
- MATIC coin price tumbled alongside the rest of the crypto market due to the Russia-Ukraine standoff
- Nevertheless, MATIC is one of the best cryptocurrencies to buy this 2022.
As one of the dominant altcoins in the cryptocurrency ecosystem, Polygon (MATIC) has had its fair share of prevalent price corrections in the trailing 7-day period. The coin started the week with positive gains and a peak price of $1.866, before taking a deep dive in the wake of the Russia-Ukraine standoff that sparked a sell-off in both the traditional stock market and the digital currency world.
MATIC’s Growth Outpacing Other Altcoins
At a time in the past week, MATIC slipped to a low of $1.36, as the fears of Russia invading Ukraine worsened and the tensions caused investors to dump cryptos, including MATIC. The shock that reverberated across the altcoin world has been cushioned and MATIC price has largely recovered from this low price point, trading at a price of $1.54, up 5.74% in the past 24 hours.
Greg Waisman noted this price growth is in many ways surprising, seeing that MATIC has somewhat decoupled from the rest of the altcoins which are on the downtrend at the same time the MATIC price was quoted. This is an unusual trend, one that showcases how the Polygon network is pivotal to the optimal functionality of broader decentralized finance and Web 3.0 ecosystem respectively.
This unprecedented price growth can mean one of two things for the token. A sustained growth based on a positive sentiment across the board, or a swift reversal as many old holders will see this price run-up as an avenue to take profit.
While the growth may be short-lived in the short term per our expectation of a slight correction, the factors that can be attributed to this growth may also be relied upon to help maintain a steady course in the medium to long-term perspective.
The factors can be linked to the focus on the inherent capabilities of the protocol which the development team has highlighted will be enhanced with Zero-Knowledge Rollups. Amidst these price dumps, investors seem hung up on MATIC for these capabilities which can help numerous smart contracts scale up, and in turn, broaden the utility and demand for the coin.
What Is the Forecast for Polygon?
Waisman is sure that Polygon has a very attractive outlook per its recent price performance, relative to other altcoins around today. The coin’s fundamentals support good price growth in both the medium and long term and technical indicators also point to these possibilities.
Beyond the highlighted fundamental features that largely weighed the price of MATIC down in the past week, the MATIC coin has also maintained a relatively good metric as a digital token that has been stretched thin by sellers, comfortably cresting it in the ‘oversold’ region.
This region is typically characterized by a targeted recovery that has helped ignite the new run that has been experienced in the past few days. With the Relative Strength Index pegged at 43.27 on the daily chart of the MATIC/USD trading pair, the coin is arguably on track to regain its upward momentum as it looks to chart a new course for the next week.
Based on this, MATIC has a price target of $1.85 in the short term, an estimated level of $2 in the medium term as $3 is projected for the coin in the long term.
Is This a Good Asset to Buy Now?
As an investment asset, Polygon (MATIC) is worthy of consideration by both retail and institutional investors. Waisman noticed that earlier this month, Polygon announced a private token sale funding round in which it raised $450 million worth of MATIC coins. The funding round enjoined participation from big investors including Sequoia Capital, SoftBank’s Vision Fund 2, and Galaxy Digital, among others.
It is not coincidental that these investors chose to back MATIC. Notably, it is because they understand the potentials in the coin, as one of the most undervalued altcoins in the space today. When this current “crypto winter” is over, investors will choose to back a project that has a good tendency to grow faster than others, and a token like MATIC fits the description in more ways than one.
The network’s ecosystem is growing at a very fast pace, with more than 7,000 decentralized applications already using Polygon to scale their protocols. The relevance of Polygon is bound to keep growing as the development team is doing all it can to push the network in line with the dynamics observable in the Web 3.0 ecosystem.
With over 52,000 contract creators and 135 million unique addresses, Polygon has what it takes to continually bring Ethereum scaling solutions now and in the near future. The culmination of these positive ecosystem outlooks are poised to continually back the inherent growth of the MATIC coins even though the manifestation is delayed into the near future.
