There was enthusiasm in the market when the price of Bitcoin (BTC) dropped to $ 43,537 on February 28 and steadily rose to the $ 50,000 mark on Monday.
Positive movements in the market also increased the amount of transactions in the decentralized finance (DeFi) sector. As the transactions intensify, the fees in the Ethereum network continue to increase and the second layer protocols that provide solutions to this issue are gaining popularity.
In particular, the three protocols Polygon, xDai and Loopring stood out by offering an alternative to high traffic in the Ethereum network.
MATIC/USDT – Polygon teknik analiz
Polygon, formerly Matic, was officially launched as the second layer in the Ethereum network, including interoperability, as of February 9.
Traded at $ 0.05, MATIC rose 400 percent during this period to an all-time high of $ 0.245 on March 1. Excitement increased with the announcement of Aavegotchi mainnet on March 2 and transaction volume increased with interest in MATIC.
4-hour chart for MATIC / USDT pair. Source: TradingView
Aavegotchi is one of the first projects to bridge the Polygon network, and if the mainnet runs smoothly, other projects will likely join the network.
MATIC also announced on February 26 that gaming giant Atari will integrate Polygon to “run NFT and other tokens on Layer 2”.
MATIC / USDT pair daily chart. Source: TradingView
Looking at the wider time frame, the rising moving averages (MA) and the relative strength index (RSI) close to the overbought zone show that the bulls are currently behind the wheel. As long as the MATIC price, which is gradually increasing, does not fall into the 20-day exponential moving average (EMA) zone, calculated at $ 0.16222 in the short term, the most likely direction is up.
If the bulls continue to buy, it could rise up to $ 0.4, according to the 1.618 Fibonacci expansion tool. The opposite happens and the uptrend will take damage if the price drops below the 20-EMA level. In this case, a horizontal movement can be observed in the price.
STAKE / USDT – xDai price analysis
xDai was another Layer 2 solution that caught the attention of investors in recent weeks. xDai; A fixed price payment system created by POA Network. It works as a side chain of the open source Ethereum network that provides a suitable environment for smart contracts.
The STAKE token of the blockchain network contains a structure that supports multiple chains that are offered as collateral for validators and delegates to participate in the consensus mechanism and receive incentives in exchange for block generation. The purpose of the XDai platform is to provide faster and cheaper transactions than the Ethereum network.
Since trading at $ 7 on January 2, the STAKE price climbed to an all-time high of $ 42.7 on February 21. In this process, it gained 500 percent value.
Daily chart of the STAKE / USDT pair. Source: TradingView
The project’s Twitter account includes numerous partnership and integration announcements that will help push the STAKE price higher.
For example, the integration of Binance Smart Chain (BSC), which allows users to transfer funds from Binance to xDai through the bridge established, and the promising Bao Finance’s transition to the xDai network have been announced.
As seen on the chart, the price corrected after reaching its all-time high and declined to the 50-day simple moving average (SMA) ($ 21.41). The positive point here is that the bulls are making efforts to increase the price to the 20-day exponential moving average (EMA) ($ 26.31) with their purchases.
Close to the horizontal moving averages (MA) and the intermediate relative strength index (RSI) point to instability between buyers and sellers. If the bulls, backed by the enthusiasm of the integration news, can pull the price back to the 38.2% Fibonacci retracement level ($ 29.06), it is possible to test the all-time high once again.
On the other hand, a decline below the 61.8% Fibonacci retracement level tested for a short time on Feb.28 interrupts the uptrend and the price could retreat to the $ 14-15 range.
LRC / USDT – Loopring technology analysis
Loopring is a Layer 2 solution focused specifically on the creation of decentralized cryptocurrency exchanges (DEXs).
Popular DEXs such as Uniswap and SushiSwap are among the most important bottlenecks in the Ethereum network. The sidechain made specifically for stock exchange trading can help alleviate congestion in the network, and Loopring is aiming just that.
Loopring’s LRC token was traded at $ 0.16 on January 1, and rose to $ 0.88 on February 12. During this period, a maximum increase of 430 percent was observed.
Daily chart of LRC / USDT pair. Source: TradingView
The pair, which moved within the rising channel line for about 50 days, fell below the channel support after heavy sales of the months on February 22 and 23.
With an update to the network on Feb. 28, the price started to rise again when the Loopring exchange announced that it was adding trading pairs between Wrapped Bitcoin (WBTC) and many cryptocurrencies.
The price, which rose up to the 20-day exponential moving average at the time of the publication of the news, is trying to enter the rising channel again. If the bulls increase the purchases and close is achieved inside the channel, the closest target will be the channel’s median of $ 0.8. Then, the uptrend can be expected to continue towards the top of the channel.
On the other hand, if the excitement of the announced trading pairs ends quickly and the price loosens to $ 0.56, where the 50-day simple moving average (SMA) is calculated, the uptrend will stop. The moving averages on the horizontal and the relative strength index (RSI) near the positive zone show that sideways movement may come for a while.
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