The Polygon price shows no signs of slowing down just yet. The token continues to make new high after new high and is +8000% since the start of the year.
Polygons’ popularity this year comes on the back of the current Decentralized finance (DeFi) boom. The network is a level 2 scaling solution for Ethereum. So in many ways, the greater the adoption of the Ethereum network, the more positive that should be for the polygon price.
As the Ethereum network becomes congested, developers will be looking for scaling solutions. Polygon is perfectly positioned to take advantage of this.
The recent rally has seen its market cap increased substantially. After spending much of 2020 in the Millions, the token is now worth a staggering $10.7 Billion. MATIC is now the 20th largest crypto asset by valuation.
It’s quite likely that the price may have more to go on the upside. Should you chase it into a rally of this magnitude? Probably not.
The price has been following a pattern recently. Periods of consolidation have been followed by the Polygon price breaking higher.
The market is currently in a breakout phase, and I would prefer to wait for a period of consolidation before concluding.
On the one hand, the relative strength index reading of 83.30 is stretched in the short term. And this suggests that the price may need to cool off a little before it can make further gains. However, It may squeeze higher first.
Traders should wait for a better opportunity as trying to chase the price higher can often prove a dangerous strategy.
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