MATICUSDT BUY | S6T4 - Team Trading Post for Team Frontline.
The name and introduction of the project token, which exchanges it can be traded on, project / technical information of the coin/ team background, etc.
Why are you optimistic about this token today, and how long do you wish it can rise?
How to analyze the token? (This can be technical analysis and trading strategies learned from professor's courses) - This section is very important.
Your plan is to hold it for a long time or when to sell.
Do you recommend everyone to buy this token? Give reasons for your answer.
Any other thing you might want to share about this coin/token.
INTRODUCTION: Good day @abdu.navi03 and every member of this great community. Welcome to my entry post for the season 6 week 4 trading competition.
The name of the token I will be trading today is MATIC. Matic is a digital currency that is used to govern, secure, and pay the transaction fees of the Polygon network. It is the currency that enables users to interact with the decentralized application in the polygon ecosystem and it is an ERC-20 token and which means that it is compatible with other Ethereum-based digital currencies.
Polygon network which was formerly known as the Matic Network is a scaling solution whose goal is to provide multiple tools to enhance or improve the speed and also reduce the cost of transactions on blockchain networks.
Polygon is a technology platform that allows blockchain networks to connect and scale. The platform makes use of the Ethereum blockchain and connects the projects built on it. While still affording the security, interoperability, and structural benefits of the Ethereum blockchain, a blockchain project’s flexibility, scalability can be increased by the Polygon platform.
Some other things to know include,
Polygon is an energy-efficient platform and this can be attributed to the modified consensus mechanism Proof of Stake used by the platform. This characteristic aid or enhances the use of its native currency MATIC.
Polygon allows developers to create and deploy their blockchains that are compatible with the Ethereum blockchain.
Polygon can enable communication between Ethereum and other blockchains i.e., the network allows the transfer of data and tokens between one another.
Polygon can help existing blockchain networks become compatible with Ethereum
Polygon platform supports over 7,000 blockchain-based projects s of the time of doing this homework.
The polygon platform makes use of a consensus mechanism that completes the transaction confirmation in a single block and by doing so, Polygon executes transactions very fast. The platform's average block processing time is 2.18 seconds. This feature aids the use of its native token.
Polygon is characterized by parallel processing which is a noticeable improvement to blockchain network scalability in general and which also enhances the wide adoption of the platform.
Finally, the transactions fee of the platform is low and this is also one of the reasons for the huge growth of the platform and its token.
The following are some of the exchanges MATIC can be traded on.
Polygon was co-founded by Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic in India in 2017 and was originally called the Matic network. It was released in 2020 and was rebranded to Polygon in 2021.
Polygon which is a multi-level platform and which is powered by the MATIC token aims to connect and grow or scale Ethereum-compatible projects and blockchains with the help of a large number of sidechains. The core of the network is the Polygon software development kit (SDK) which is used to build applications that are compatible with Ethereum as sidechains and to connect them to its main blockchain.
These sidechains can be built using the Plasma Chains, zk-Rollups, or Optimistic Rollups scalability method. Polygon makes use of a Proof-Of-Stake consensus mechanism that uses the staked Matic tokens to reach consensus on the network. By staking $MATIC, one can secure the Polygon network and in turn, earn rewards. In this kind of system, the threat of losing one’s MATIC discourages attacks.
In April 2019, the Polygon team raised a sum of $5.6 million in ETH with the sale of 1.9 billion MATIC tokens over a period of 20 days during its initial offering.
Below is how the remaining MATIC tokens were distributed
- The Team tokens are 16 percent of the total supply.
- The Advisors tokens are 4 percent of the total supply.
- The Network Operation tokens are 12 percent of the total supply.
- The Foundation tokens are 21.86 percent of the total supply.
- The Ecosystem tokens are 23.33 percent of the total supply.
In 2021, Polygon launched Polygon Studios which is a subsidiary of Polygon that focuses on blockchain gaming and non-fungible tokens (NFTs).
Below are the reasons why I am optimistic about this token.
The Polygon network is a sharded multichain network and this connotes that it can process large transactions on several chains in parallel which in turn improves the blockchain scalability. This characteristic will continue to enhance the wide and global use of its native currency and consequently increase its value.
Looking at the token historical price statistics, MATIC has been doing well over the past few years and since its inception, it has brought about a large ROI of 36933.28% according to CoinMarketCap as of the time of doing this homework. From the ROI, we can see how profitable the coin has been and will be.
Also, before the halt of the bullish trend the market was undergoing generally in 2021, we can see that during the bullish trend, MATIC reached its All-time-high price of $2.92 and we can as well how the prices reduced during the bearish trend period. This does depict that MATIC follows trends and by the time the market recovers fully, the price might reach the all-time high or even rise beyond it.
Furthermore, MATIC has a maximum supply of 10,000,000,000 MATIC and presently, there is about 7,701,069,511 MATIC in circulation even though this doesn't guarantee an increase in its price, it does tell us that there is likely going to be an increase in its demand which will consequently bring about an increase in the token price and thus make it good for investment.
Moreso, MATIC is currently the 17th biggest cryptocurrency by market capitalization with $12,282,026,829.92 and it is trading at a price of $1.59 and with a market dominance of 0.61% and with a 24hrs. trading volume of $621,332,410.08. All this signifies how great the vision behind the project is and how the token will continue to be fair in the future.
Finally, the implementation of various decentralized applications and custom blockchains projects on the Polygon network brings about the wide or global use of its native token MATIC, and also the scalability, decentralization, interoperable, high security of the ecosystem make the token a better prospect for investment.
In this trading section, I will be doing my technical analysis using price action, resistance, and support, and indicators to filter my entry. I will be using tradingview for my analysis and placing my orders on my Binance futures exchange live account. I enjoy using tradingview because it has so many technical tools which make technical analysis easy.
I will be trading MATIC/USDT using the current market price trade because it will be a short trade and I will be using the relative strength index indicator to filter my entry.
- On H1 time frame MATIC/USDT I noticed that the price was in an uptrend forming a higher high and higher lows, then I marked out these highs and lows and I added the 13 and 50 EMA, then I proceeded to a lower timeframe to check the market behavior over there.
- Getting to 30min timeframe, the support and resistance became clearer then I marked my support and resistance zone. I noticed the price has been bouncing off the support level, I went lower to 15min timeframe to take my entry.
- At 15min timeframe it was giving me a buy signal, then I added the relative strength index indicator (RSI) to the chart to filter my entry and I noticed that the price was oversold, then I went to my Binance futures account to place my entry.
- I placed a buy entry at my Binance futures live account at an entry price of 1.6702 and my take profit and stop loss at 1.694 and 1.642 respectively. A few minutes later I checked back on the trade to see that it was in profit and the image below shows the results of the trade
I will not be holding it for long as the trend is not really clear yet in the short analysis I did. According to my technical analysis the market is looking bearish at lower timeframes and looking bullish at higher time frame. Due to this reason, I will be going for a short trade for MATIC.
Yes.
I will recommend people to buy the MATIC token though I will prefer me buying the coin first before recommending it to other people to invest in coin. According to my technical analysis, MATIC Price has not picked its real direction because it's not stable at the moment, though it's in an uptrend it has gotten to a support and resistance level where the price has been ranging for some time now.
Seeing this will make me hold a bit in investing in the token because it might break the support and drop down drastically which might not be too good for me as a trader. but I would like to advise anyone investing in this token should use minimum risk management, not rush into the market, and let the market respect technical analysis before going into the market.
CONCLUSION
Polygon is a technology platform that allows blockchain networks to connect and scale. Built on it is a digital currency known as MATIC which is used to govern, secure, and pay transaction fees.
The cryptocurrencies market is volatile and so it is best to carry out one's technical analysis before making any trading decisions. Furthermore, proper or adequate trading strategies should be put in place and each trader should make use of a risk-reward ratio that best suits him or her.