Polygon (MATIC) sees a strong oversold bounce after $250B crypto market rebound

Polygon (MATIC) emerged arsenic 1 of the champion performers among high-ranking cryptocurrencies connected Wednesday arsenic the terms roseate astir 17% to scope an intraday precocious astatine $1.825.

The gains surfaced amid a synchronous rebound crossed the crypto marketplace that started connected Jan. 24. In detail, investors and traders poured successful implicit $250 cardinal crossed integer assets, benefiting Bitcoin (BTC), Ether (ETH) and galore others successful the process.

Performance of the top-fifteen cryptocurrencies successful the past 15 days. Source: TradingView

Polygon, a secondary scaling solution for the Ethereum blockchain, also cashed successful connected the crypto marketplace rebound. The valuation of its autochthonal token, MATIC, roseate from arsenic debased arsenic $9.77 cardinal connected Jan.24 to arsenic precocious arsenic $13.58 cardinal 2 days later.

Meanwhile, its terms jumped from $1.312 to $1.825 successful the aforesaid play — that's astir a 40% summation successful conscionable 3 days.

Fed gathering and high-profile hiring

The latest bout of buying successful the Polygon marketplace appeared up of a Federal Reserve announcement astir its interest complaint increase scheduled to travel Wednesday afternoon.

In detail, cryptocurrencies person besides been done respective whipsaws successful caller months implicit expectations that the U.S. cardinal slope would embark connected a bid of involvement complaint hikes to combat inflation. Similarly, banal markets person suffered due to the fact that of the imaginable of the Fed's shrinking equilibrium expanse and higher rates.

According to Luca Paolini, the main strategist astatine Pictet Asset Management, radical whitethorn person expectations that the caller turmoil successful the banal marketplace and a rising rift betwixt Ukraine and Russia that has drawn inNATO allies' absorption whitethorn person the Fed code down its complaint hike rhetorics.

Waiting for the FED to talk today.

Nonetheless, Polygon managed to outperform apical rivals similar Bitcoin and Ethereum successful presumption of intraday gains, and it appears a high-profile hiring was the halfway crushed down it.

As Cointelegraph reported connected Tuesday, YouTube's caput of gaming, Ryan Watts, near the streaming elephantine to join Polygon Studios, a gaming and nonfungible token (NFT), backed by the namesake layer-2 protocol's $100 cardinal fund.

Related: Altcoins publication 40% summation aft Bitcoin and the crypto marketplace participate a alleviation rally

The quality seemingly boosted investors' appetite for MATIC, prompting it to bash amended than different large-cap cryptocurrencies.

Huge quality for $matic https://t.co/uNFO6MtddN

Key enactment levels held

MATIC's crisp rebound placed the terms backmost supra its 200-day exponential moving mean (200-day EMA; the bluish question successful the illustration below), a level important for its relation successful limiting the market's downside bias.

MATIC/USD regular terms chart. Source: TradingView

On Wednesday, MATIC bulls attempted to reclaim the 200-day EMA arsenic enactment astir a week aft losing it. The drop-and-bounce astir the bluish question looked precise akin to the terms enactment successful the July-August play past year, wherein closing supra it had led to a 200%-plus terms rally.

The fractal shows beardown buying sentiment among MATIC traders adjacent the 200-day EMA.

Therefore, should the terms enactment supra the support, its likelihood of continuing its uptrend appears higher. Nonetheless, the bullish momentum risks exhaustion adjacent MATIC's descending trendline resistance, arsenic shown successful the illustration above.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.