Crypto Analyst Benjamin Cowen Gives His Outlook For Polygon (MATIC)
Benjamin Cowen, a prominent crypto market analyst and trader, is looking into what could be in store for Ethereum (ETH) scaling solution Polygon, whose native token MATIC has been ascending recently.
In a recent video, Cowen looks into MATIC against the two leading digital assets, Bitcoin (BTC) and Ethereum, and how it could perform going forward.
MATIC/BTC
According to the analyst MATIC has performed well against the USD lately, but how it stands against Bitcoin is also an important metric.
“We know that in order for us to really have a sustained breakout, we’d like to see Bitcoin ideally get back above the bull market support band. That would be the best-case scenario for MATIC if Bitcoin can get back above those levels.
Right now Bitcoin is still below the level and MATIC is still rallying, so who am I to say that it can’t rally above it?
But in order to have the best market conditions, we would like to see Bitcoin get… back to $53k or so would actually be quite ideal, and would set MATIC up for an ideal situation.”
At time of writing, MATIC is trading at 0.00004565 BTC down 2.7% on a daily chart.
MATIC/ETH
How an altcoin performs against its ETH trading pair, is the current measure of the altcoin’s strength or weakness, says the analyst.
“Now the true test, as we all know, is what does it do against Ethereum? What if it bleeds against Ethereum? Does it bleed? Not really.
This is a pretty nice trend here. And you can see that most recently it started to break out again…
It does appear to be holding support at these levels [0.00037 ETH], it’s back above the bull market support band, and it’s also approaching the prior all-time high in terms of the MATIC/ETH valuation.
In order to get there, it would need to climb another 61% or 62% for a constant valuation of Ethereum. That would actually take the valuation of MATIC up to over $3.50 or so.”
At the time of writing MATIC is trading at 0.0005321 ETH with 0.3% upside on the daily chart.
Outlook For MATIC
According to Cowen, MATIC’s overall prospects look very good.
“I do think it is a good project and will probably continue to trend up for the duration of the cycle and move up a few more ranks the current market capitalization rankings of a lot of different altcoins.”
But at lof of MATIC’s future depends on Bitcoin.
“It looks like it’s breaking out against Bitcoin after holding support for a while. It looks like it’s breaking out some against Ethereum…
The main downside risk – with all altcoins – is if Bitcoin gets rejected on its try to overcome the bull market support band.
If that happens and it comes back down, then there is a higher probability that most altcoins would bleed against the US dollar, and against Bitcoin, and even against Ethereum.”
At the time of MATIC is trading at $2.22, down 4.35% on a daily chart.
