MATIC price has raced through the swing lows of a key barrier, kicking off an uptrend. This development occurs when the bitcoin market recovers from the three-day COVID-induced slump.
On November 20, Uniswap received a suggestion on its forum to migrate to Polygon, a scalability solution. Uniswap, an automated market maker (AMM), is hampered by high gas fees and delayed transactions because it is built on the Ethereum blockchain. To overcome these concerns, Polygon recommended migrating the AMM to its platform.
The proposal was to seek permission from the AMM’s team for the migration. With 7.79 million UNI voting ‘yes,’ a Polygon chain-based Uniswap is very likely. Users will be able to transact on the AMM without having to worry about high gas fees as a result of this.
While Uniswap is the most recent platform to join the Layer 2 network, other popular platforms such as Aave, Curve, Balancer, SushiSwap, Matcha, and others are already present, indicating the scaling solution’s capability.
MATIC’s price fell 24% from November 26 to November 28, hitting a swing low of $1.49. This downswing swept the lows set on November 22 at $1.52, allowing market makers to accumulate liquidity and signal the commencement of an upswing.
This was immediately followed by an 11 percent increase to the current MATIC price of $1.65. Polygon is expected to struggle with the 50% retracement level at $1.75 in the near future. If MATIC price manages to break through this barrier, it will signal the start of an uptrend.
In this scenario, Polygon could continue its advance and retest the $1.88 resistance level. This ascent would represent a 15% improvement over the current position. If purchasing pressure develops, MATIC’s price could continue to rise until it reaches the range high of $1.97.
While things are looking good for the MATIC price, failing to cross the $1.75 resistance level will show buyer weakness. If selling pressure increases, Polygon will be forced to make a lower low below $1.52, rendering the bullish thesis worthless.