The cryptocurrency market is now experiencing a chaotic transaction, with coins fluctuating between red and green. While BTC has remained above $41k, ETH has lost $3.2k. On the other hand, several altcoins on the chart are trading in the green with low volatility.
Investors are in a panic as a result of the recent market crash, but Terra’s LUNA, Polygon (Matic), and Chainlink (LINK) are the three cryptocurrencies that could be game-changers this month.
LUNA has been in a downtrend for the past two weeks, having risen from $50 at the beginning of December to a high of $103 later that month. The price is currently trading at a support level of $71, and a breach below that level could result in a drop to about $50.
When we look at the tremendous growth of Terra’s own stablecoin TerraUSD, we can see that LUNA still has a lot of power left in it. The UST has already climbed into the top 20 cryptocurrencies in terms of market capitalization. This is due to the fact that the UST has a wide range of DeFi applications and is used on platforms such as Curve Finance, Avalanche, Fantom, and others.
The deflationary mechanism shared by LUNA and UST is quite intriguing. As a result, every time the UST stablecoin is used, a portion of LUNA is burned. Thus, the more UST is issued, the less LUNA is available, driving up its price. As a result, we feel the recent correction represents an excellent value for any new entry.
MATIC price action has been under enormous pressure since hitting new all-time highs two weeks ago. As a result, the return within a short period became a huge negative event, indicating that market bearishness was on the way. The resistance level is $2.15, while the support level is $2.00.
The Polygon (L2 Ethereum) has enjoyed the benefits of Ethereum’s high gas fee and will do so in the future. Polygon’s MATIC was one of the best-performing stocks last month, reaching an all-time high of $2.84.
Since then, MATIC has corrected by more than 30% and is now trading at roughly $2.0. Polygon is rapidly increasing thanks to cutting-edge technology like zk-Rollups. The 0xPolygon bridges saw $500 million in inflows during the final week of December, according to the most recent update.
In the last week of December 2021, almost two million smart contracts were executed on Polygon, compared to just 105k on Ethereum. Polygon is swiftly becoming the network of preference for blockchain enthusiasts, as evidenced by this. It wouldn’t be a surprise if MATIC cracked the top 10 crypto-list this year or within the next few months.
Although Bitcoin has been bearish, Chainlink has been pretty bullish, and in the last few days has been able to flip its $23.2 area from supply to demand. The altcoin joined Bitcoin’s fall, sliding back from $27.5 to attempt the $23.2 support level. Despite the bearish outlook for the overall market, LINK has seen strong demand, signaling that if market sentiment shifts from bearish to balanced, the altcoin will skyrocket.
Chainlink (LINK), an Oracle service provider, has been constantly working to buck the market trend. LINK has been steadily rising despite adverse market pressure. At the time of publication, LINK was trading at $27, up 4%.
There is a significant probability that LINK will recover this year as a result of multiple major happenings. Last year, it set a new record for Total Value Secured (TVS) with $75 billion, marking it the DeFi ecosystem’s second richest type of decentralized consensus.
Another significant achievement is that the Chainlink ecosystem already includes over 1000 projects, with nearly half of them expected to be integrated by 2021. In the wake of such important developments, It is predicted that LINK will rise higher.