Popular crypto analyst Benjamin Cowen says multi-chain scaling solution as the number one crypto asset Bitcoin (BTC) falters Polygon (MATIC) raises the bar even higher.
Speaking at a new strategy session Benjamin CowenHe told 666,000 YouTube subscribers that Polygon’s daily levels through July show a clear bullish trend, and price “exploration mode” could be just around the corner even if the leading Ethereum scaling solution hits an all-time high.
“You could argue that we’re in a general uptrend and approaching price discovery mode… That’s always interesting because you don’t have to have the same kind of walls at all these different price points.”
The analyst went on to explain how investors behave differently when their crypto assets rise or fall.
“For people who buy Bitcoin for $60k, $65k or $69k, you can imagine that some might just want to quit if their cost for the whole stack is at that level.
They do their sales there, and if they go to those prices one day, they’re happy to get out. They don’t care about making any more profits than that, they just prefer to cut their losses and continue at a potentially lower price or go head-to-head.
Whereas, once you enter price discovery mode, and all history, everyone who buys this token is in profit… If you are spot buying instantly, you are watching the token rise and watching everyone make a profit.
So you don’t see exactly the same kind of walls. Now people are finally making a profit and there are new bag owners to wait for.”
Cowen then presses to enter price discovery mode. MATICHe revealed the exact level he believed should reach.
“Let’s say $2.79. The $2.79 MATIC will put it in price discovery mode. And there is nothing underneath. I’ve seen some people say we’re in price exploration mode here ($2.53)… but you have to remember that before that big crash in May, MATIC actually went up a bit…
It’s interesting to see it approaching new all-time highs, but I think what’s more interesting is that it’s doing this while Bitcoin is in a downtrend. This is extraordinary for me.”
The seasoned analyst ended his thoughts by highlighting the significant contrast between recent Bitcoin highs and Polygon dips.
“MATIC is in an uptrend despite everything Bitcoin has been through in the last five weeks. MATIC keeps pushing higher and higher and higher. And instead of putting lower highs like Bitcoin does, it’s putting higher lows.
For example, if Bitcoin returns to $47,000 or some other level, it wouldn’t be so crazy for MATIC to go back to the trendline. Maybe you could potentially get you back $2.
I’m not saying it’s going to be two dollars, but… we were $1.80 a week ago. So let’s not pretend this won’t happen. In fact, if you look at the daily closings, you can see that it looks much better.”
At the time of writing, the 14th-ranked MATIC was up 5.71% on the day to $2.57. The altcoin will need to increase by an additional 8.56% to reach the $2.79 level that Cowen is aiming for.
The leading crypto BTC, on the other hand, remained stable at $48,435 during the day.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.