Since the market surge in October, the market value has increased to over $ 300 billion, gaining massive momentum. Bitcoin continues to trade above its important resistance level, with Ethereum well over the $2,000 mark.
Overall, the crypto market has displayed notable price action recently. On the other hand, Ethereum’s Layer-2 ecosystem has recorded significant price drops in value, with top coins losing over 4% within the past day.
Polygon Price Analysis:
The MATIC price was seen trading in a closed space between $0.6095 and $0.6550 for a brief period, following which the market gained momentum and the price surged.
Polygon recorded a jump of over 30%, after which the price was rejected at $0.8620 and corrected. The bulls held the price strong at $0.8030.
Following this, the price regained momentum and recorded significant volatility before being rejected at $0.9640. Since then, the MATIC token has been trading under a bearish influence.
The Moving Average Convergence Divergence (MACD) displays a rising red histogram, indicating higher selling pressure than buying pressure. Further, the averages show a bearish convergence, suggesting the price will continue to lose value.
If the bulls hold the Polygon price above the resistance level of $0.8030, the price will regain momentum and prepare to test its upper resistance level of $0.8620 soon. Further, if the market continues to gain momentum, it will run to test its resistance level of $0.9349 in the month ahead.
Conversely, if the bears overpowered the bulls, the MATIC price will soon lose momentum and fall to test its support level of $0.7408. Moreover, if the bears continue to dominate the market, it will further drop and test its lower support level of $0.6550 in the coming days.
Arbitrum Price Analysis:
The ARB price displayed significant price movement post-market surge. Arbitrum steadily gained momentum but recorded massive volatility in its price. After reaching a peak of $1.2258, the token faced rejection, following which it lost momentum.
The bulls and bears were found to gain control over the price, but after multiple failed attempts, the bears overpowered the bulls, resulting in the Arbitrum price dropping below the support level of $1.0652.
Since then, the ARB token price has been trading in a consolidated range between $0.9895 and $1.0652 and is predicted to make a move soon, the outcome of which is unpredictable.
The MACD displays a declining green histogram, indicating reduced price action for the coin. Further, the averages recently recorded a bearish convergence, suggesting that the Arbitrum token will undergo a significant correction in the coming days.
If the bulls gain power and push the price above the resistance level of $1.0652, the ARB price will regain momentum and prepare to test its upper resistance level of $1.1317. Further, if the market continues to trade positively, it will run to test its resistance level of $1.2258 in the coming days.
Conversely, if the bears gained control over the market, the Arbitrum price will lose momentum and fall to test its support level of $0.9895 soon. Moreover, if the bears dominate the market, the ARB token will continue to drop and test its crucial support level of $0.9228.
Immutable Price Analysis:
For almost two weeks, the IMX price was trading in a closed range between $0.5840 and $0.6969. The immutable token gained massive attention following the price pump in November.
The token jumped over 28% before being rejected at the resistance level of $0.9618. After this, the price fell to test its support level of $0.8098, but the bulls held the price strong. The IMX price then regained momentum and experienced another jump in value.
The Immutable price was seen hovering close to its resistance/support level of $1.1311 for a while, after which the price recorded a jump of 15% and successfully broke out of the resistance level of $1.2089. Since then, the price has been trading sideways.
The Moving Average Convergence Divergence (MACD) displays a rising red histogram, indicating a bearish influence over the market. Further, the averages record a bearish convergence, suggesting the price will continue losing momentum in the coming days.
If the bulls continue to hold the price above the support level of $1.2809, it will regain momentum and make a run to test its resistance level of $1.50 soon. Maintaining the price at that level will set the stage for the price to attempt to test its resistance level of $1.750 in the coming month.
Negatively, if the bears overpower the bulls and pull the price below $1.2809, the price will lose momentum and fall to test its support level of $1.1311 soon. Moreover, if a trend reversal occurs, the coin will plunge and test its lower level of $0.9618.
Conclusion:
The Layer-2 solutions are known for their transaction speed, which helps users make quicker and smoother transactions. Layer 2 was mainly created to reduce gas fees, saving users money.
Further, Ethereum’s L2 ecosystem has housed one of the most promising and secure networks. It has also helped develop some major projects and attracted many blockchains.
With this, the ecosystem is expected to gain major traction in the upcoming bull cycle, with the tokens taking a step toward their new high as the market’s recording new ATH in the coming time is inevitable.
