Polygon (MATIC) Price Predictions for 2022

·6 min read

Polygon is an Ethereum token that provides a scaling solution to Ethereum and offers cheaper and faster transactions on layer-2 sidechains (blockchains running on the Ethereum main chain).

Matic is the native currency in Polygon’s ecosystem and is used for staking and paying transaction fees. The interoperability feature means you can deposit the Matic from Ethereum, interact with the tokens and eventually withdraw back to the Ethereum platform.

In essence, Polygon addresses limiting factors such as high transaction cost, which hinder Ethereum from becoming the biggest crypto despite its excellent capabilities compared to Bitcoin. Developers and investors find Polygon quite endearing because it supports the creation of decentralized apps and smart contracts using Ethereum’s top-notch security protocols but at higher scalability and low gas fees.

This explains why the value of Polygons has surged massively in the last two years. The Matic token was trading at $0.0178 in January 2021 and grew to $2.9 at the end of 2021. Its market capitalization is over $13 billion. Polygon value has increased significantly, but will it sustain this growth in 2022?

Let’s explore Polygon’s price protections in 2022.

Polygon price Forecasts for 2022

Forecasting future prices of an instrument involves using technical and fundamental analysis or mathematical computing methods. We will use these methods to project the price of Polygon in 2022. Before we do our own analysis, let’s take a look at CryptoPredictions’ Polygon. These guys comingle mathematical models, computing, and historical data to predict future prices.

Q1 and Q2

Polygon is currently trading at $1.79. CryptoPredictions shows that the price could go as high as $1.809 in February and as low as $1.230 if it dips. The price is expected to average $1.447 in the month. The site expects Polygon’s value to surge in March and average $1.463. The uptrend is projected to continue in the second quarter. Between April and June, the forecasted price range is between a high of $1.257 and $1.887. The projected average price for April, May, and June is $1.479, $1.494, and $1.510.

Third and Fourth Quarter Projections

The third quarter is also expected to bring good tidings. The least expected price of a Polygon coin in July is $1.295, but the price goes as high as $1.905. In August, the forecasted price range is between $1.307 and $1.923. In September, we could see the price reach $1.940. If the price falls, it could find support at $1.330. During the month, traders can expect the price to average around $1.552

A bullish trend is expected to characterize the fourth quarter. CryptoPredictions expects buyers to push prices to $1.956 in October. If the price dips, it could find support at $1.330. This scenario will continue to November, with the price averaging $1.578. However, we could see Polygon reach a new high in December if the site’s forecast sees the light of the day. The buyers could push the price to new highs of $1.987, while a correction could go to $1.351. In general, the price is projected to average $1.590 in December.

Technical Analysis

Traders can forecast future prices by using technical indicators. Let’s delve into technical analysis to forecast the price of Polygon.

The chart shows the price movement for the Polygon. According to the moving average convergence divergence (MACD), the price is clearly on the uptrend. Note that the indicator comes from a bearish trend signified by red bar graphs. The bullish green bars show the uptrend is gaining traction, and traders should be looking to go long.

The moving averages also show the price direction. A steep downtrend appears on the chart, signified by the MA line. But the price appears set for a reversal after a flat movement. In fact, Polygon has posted a bullish candlestick. If the moving averages take a clear upward direction, traders could consider opening a long position. In addition, the RSI shows the price is surging after hitting an oversold area. The price is in an uptrend and has a long way to reach the overbought area. Therefore traders can long to buy and prepare to exit when the price enters the overbought area.

The next indicator is the Fibonacci retracement. Unlike the other indicators which show trend direction, the Fibonacci indicator goes the extra mile to predict the future price at various Fibonacci levels. Currently, Polygon is trading at $1.9848, which is around the 50% retracement level. If the Polygon value increases, it could find resistance at $2.3022, the 0.618% level. If it surpasses this resistance, it could be headed to the $2.5808 (0.786 Fibonacci level)or the year-to-date high at $2.9270. If strong bullish waves blow the market, MATIC would be headed to the $1.618% Fibonacci level, matching $3.9205.

Fundamental Analysis

The technical analysis paints a picture of how the price could behave in the coming year. However, there are underlying factors that will give the price of Polygon the necessary push. Top of these fundamentals are partnerships and projects in the pipeline.

Non-Fungible Tokens (NFTs) have led to the price proliferation of many cryptos. And Polygon is no different. Adidas, a sportswear giant, and Prada, a fashion powerhouse, have teamed up to launch an NFT project dubbed Adidas for Prada Re-Source. The project announced on Twitter is a creator-owned and user-generated art that allows fans to submit NFT photos.

Digital artists Zacxh Lieberman will then combine a selected 3000 photos to create one mega NFT, akin to the prestigious Beeple NFT, which fetched $69 million. The sale proceeds will be given to charity. Goldman Sachs predicts that the NFT market could grow to $300 million. If Polygon launches more NFT projects, expect its value to increase. This could cause the prices to hit new highs.

Besides NFTs, the blockchain network is enhancing its utility and use cases by accelerating the adoption of Play-to-earn games. Polygon studios, a part of the Polygon ecosystem, is partnering with Amasa to develop a Play-to-earn game. The Polygon will provide blockchain infrastructure and support. Blockchain-based games reward players with NFTs and native tokens. Other Play-to-earn games set to launch on Polygon include Wonderhero and Nakamoto games.

The flagship projects enable Defi users to earn micro income from sources like Play to earn gaming and combine them into a single account.

Final Words on MATIC price predictions

Polygon is a scaling solution for Ethereum. Users reap the benefits of the Ethereum features, including top-notch security but at faster and cheaper rates. In addition, the Polygon ecosystem is developing a play to earn games and NFTs. The success and creation of NFT and gaming projects could see the price of Matic hit new highs in 2022.

This article was originally posted on FX Empire


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