Polygon is trading in a bullish channel while making higher lows.
Polygon is driven by a combination of market momentum and internal fundamentals.
Among the fundamentals driving Polygon is its position as one of the most significant Ethereum scaling solutions.
Polygon MATIC/USD has been on an uptrend since March 16th. In this period, Polygon has moved from $1.39 to a high of $1.67 today. Polygon continues to gain upside momentum, and with the broader market turning bullish, it could easily break the $2 mark in the short term.
Besides its price being driven by broader market momentum, Polygon is heavily tied to Ethereum, which is a big deal in terms of its long-term growth. Ethereum’s transition to Proof-of-Stake will be complete in the next few months. Test runs are already a success, which means the much-awaited shift to Eth2.0 will be done soon.
The impact is that most Ethereum transactions will move to layer-2 solutions. Polygon happens to be one of the largest and most recognized Ethereum layer-2 solutions in the market. This means demand for Polygon and other layer-2 solutions is about to skyrocket. As this happens, the value of the MATIC token will also rally.
Polygon is making higher lows in a bullish channel
Source: TradingView
Since March 23rd, Polygon has been steadily rising while making higher lows. This means the demand is so high that every dip is being eaten up fast. If the current Polygon price action continues, $2 could be attained in the next few weeks.
Summary
Polygon is in a bull run at the moment. A combination of overall market momentum and improving fundamentals around the Polygon ecosystem driving its price. Among the fundamentals driving up Polygon includes expectations around Eth2.0. Ethereum will soon be relying heavily on layer-2 solutions to complete transactions. Being one of the largest among them, Polygon is uniquely positioned to gain the most in adoption.
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