Life After The Dump
I was not part of the initial Matic pump that took place towards the end of 2019 but saw my chance in December when the dump of all dumps took place. In a matter of weeks Matic dumped from approximately $0.042 to $0.012 in the matter of a week. There was an initial dump that managed to bounce back somewhat but that was not enough to sustain it and Matic proceeded to dump further.
The entire dump totaled to approximately 71% and left many calling it a manipulation by the Matic team, or even Binance. Rumours appeared to be false but Matic had taken a very hard knock. This is when I moved in on my position. I did not get the bottom but managed a decent entry that puts me in profit today at the current price of $0.023.
Then in March Matic had to endure the Corona "kiss of death" along with pretty much every other financial asset on the market. Gold being the only asset to avoid calamity, even though it did see some sell-off and price depreciation. However, Matic has been on a very strong upwards trajectory since March and appears to be heading for a breakout!
Staking And Mainnet Bolster Price
Just as news on the Atom mainnet has had a positive effect on the price, Matic is also seeing some sun on their mainnet developments. Matic staking has also been a strong price catalyst as investors have moved to accumulate the token to earn staking rewards. Initial rewards were as high as 150% per annum but have obviously dropped significantly as more users onboard the platform.
Rewards are currently at 53%(adjusted 45%) according to Stakingrewards.com, which is a great site to gain information about different staking rewards, masternodes and upcoming staking projects. I would consider that this reward will continue to drop but still provide a decent return. I predicted that staking would become a significant protocol back in 2018 but I did not consider that it would become so prevalent.
Top projects like Tezos, Cosmos, Tron, Cardano and soon even the second largest coin by marketcap, Ethereum. Definitely a very important aspect of Crypto that will continue to dominate. So Matic is showing some good fundamentals and advancements but what are the charts saying?
Further Upside?
Looking at Matic on the daily USD chart below, one can see what appears to be a large double bottom forming. Double bottom formations are generally very bullish patterns and can often be seen playing out in Bitcoin.
Personally, I would wait for a confirmed move above $0.028 before entering a position. The current price was previously quite a strong resistance level and so one would want to see significant moves above it. A few daily candle closes above would give me a fair amount of confidence to enter a buy position. This is however not financial advise. Please do your own research. Check out Matic, it could be the next stellar performer!
