Invest 2ETH in Polygon (MATIC) - Trade in range or medium term hodl

Overview Polygon ($MATIC) (ERC-20 Token) has become a very popular name in the crypto market due to it's heavy involvement in the NFT world. Polygon effectively transforms Ethereum into a full-fledged multi-chain system (aka Internet of Blockchains). This multi-chain system is akin to other ones such as Polka dot, Cosmos, Avalanche etc. with the advantages of Ethereum’s security, vibrant ecosystem and openness.

https://polygon.technology/matic-token/

Firm highlights Polygon has large investments from numerous Venture Capital and Crypto firms such as SoftBank, Tiger Global, Galaxy Digital, Sequoia, Bitfinex and more. Polygon's use in the Ethereum network reduces the price of transactions and offers an incentive to those participants that interact with the network, making it an attractive asset in a crypto portfolio.

Current View: Positioning and headwinds Current Price at time of proposal: $1.52 Polygon saw a tremendous amount of buyers this month after Sequoia capitals $450 million stake was announced, but it wasn't enough to move it back above the $2.20 resistance level we currently see. The market's overall uncertainty is making it hard for breakouts to hold, but regardless Polygon is in a healthy range overall after a recent period of being oversold (like much of the crypto market). Relative strength index indicators look strong with a recent crossover (oversold) MACD appears to be in midst of a positive turn Falling wedge pattern is being observed Possible 1-2 weeks away from breaking through long term trend lines from a $2.8 market top late last year. Recent support has been around the $1.30 level with the next resistance level being $2.00 to $2.20.

Headwinds maintain as global economic uncertainty is at the forefront. Determination of interest rate hikes are also pending.

This trade is to take advantage of the current market pull-back and find profits as prices come back up from being oversold. It also helps diversify out current investment portfolio. Polygon has a strong correlation to ETH, as one would expect but has a weaker correlation to other holdings in the portfolio (1/1/21 - today), providing for some diversification benefit:

UFO: 0.30 ETH: 0.61 LRC: 0.45 SAND: 0.28 ENJ: 0.48 IMX1: 0.39

Investment execution recommendation: Buy at current levels of ~$1.52 Stop loss at $1.30 Could take some profits at $1.70 for a short term trade opportunity (mid March) but feel like hodling until $1.90 could be a better medium-long term play.