MATIC Price Forecast: Will Polygon Ride US Elections To Beat BNB Chain, ETH Ecosystems?

MATIC price forecast shows the asset lags despite Polygon being among the top 5 blockchains with the highest development activity in the past year. Polygon price hovered around $0.53 during the European session, a 2.3% drop over the last 24 hours. MATIC is known for its volatility during bull markets, but can it outdo BNB and ETH ahead of the U.S. Elections?

MATIC Price Forecast: Breakout Imminent Amid Twists U.S. Election Campaigns

The Polygon price chart shows the asset’s downward trend from point B to point D, forming a descending channel. This market structure usually resolves to the upside, and given its size, the price of MATIC may surge by as much as 148% back above the dollar if the breakout happens.

Polygon’s price sports a strong support-turned-resistance zone between $0.49 and $0.57. This may hold the price down if the bulls are not strong enough. MATIC is trending below the 50-day and 200-day simple moving averages (SMA), which provide some resistance around $0.57 and $0.71, respectively. Polygon’s price is at the channel’s upper resistance, testing for a breakout.

The MATIC price forecast reveals a potential double top forming on the 4-hour timeframe, a bearish reversal pattern. If the bears prevail, MATIC price may drop 3% in the short to test the neckline of the forming double top. Further selling pressure may push the price of MATIC below the support level down to $0.45.  

The MATIC relative strength index (RSI) (14, close) is currently at 47, which is neutral but trending upwards from oversold conditions, suggesting rising bullish momentum. The CMF (20) is at 0.10, indicating mild buying pressure as the money flow is positive. The indicator is headed upward, showing the buying pressure is increasing.

Polygon Competes with BNB and ETH Chains for Dominance

According to Santiment, an on-chain analysis firm, Polygon is among the top five best blockchain networks with the highest development activity in the last year. Although Polygon has seen a negative change of 1.93%, it still ranks as the third-best network in terms of development behind Ethereum and Binance Smart Chain (BSC). 

🧑‍💻 Ethereum's ecosystem continues to lead by a comfortable 2x margin over BNB Chain. Here are the top 5 ecosystems in terms of notable development activity events, and their year-over-year percentage changes:

📉 1) Ethereum Ecosystem: -0.12% 1-year change 🥇
📈2) BNB Chain… pic.twitter.com/WIl430jWxl

— Santiment (@santimentfeed) July 22, 2024

Meanwhile, the upcoming U.S. elections may also result in volatility in the crypto space. With MATIC’s price already sporting a bullish market structure, the volatility may be just what is needed to send this L2 network to the moon.

The world’s largest prediction market for politics runs on Polygon and has been gaining attention due to the U.S. elections. Data from Dune Analytics shows Polymarket hit a 28-day high volume of $266 million on July 22, and active wallets on the platform surpassed 34,000. These statistics translate to the rising popularity of the Polygon network as Election D-Day draws near.

Overtaking ETH and BNB may not be a small feat for Polygon, but the network is already moving to tap into the fast-growing Telegram-based blockchain, Ton. Polygon teamed up with the TON Application Chain (TAC) to bring Ethereum Virtual Machine (EVM) functionality to the Ton ecosystem. Polygon Chain Development Kit (CDK) will be used to build Layer 2 networks on Ton. This and other developments boost Polygon’s popularity beyond BNB and ETH.

Bottom Line

The potential impact of the U.S. elections on Polygon’s MATIC token price remains uncertain. While political events can positively influence crypto markets, the MATIC price forecast shows some bearish tendencies in its performance. Moreover, beating competitors like BNB Chain and Ethereum will likely depend on a complex interplay of factors beyond electoral outcomes, such as adoption and overall good market conditions.