Top Layer 2 Tokens Set to Displace the Gaming Token Dominance

In the coming days, Layer 2 tokens might be in the spotlight after cryptocurrencies with gaming fundamentals took the shine during the weekend. According to CoinMarketCap, gaming tokens like Gala (GALA) jumped by 61.34% in the last seven days. Pixel (PIXEL) climbed by 75.42%, while Ronin (RON) recorded a 25.52% increase.

These prices could be linked to increased capital flowing through that ecosystem. But this week, L2s like Polygon (MATIC), Immutable (IMX), and Optimism (OP) might be the beneficiaries of this high liquidity.

One reason for this projection is the Ethereum (ETH) Dencun upgrade slated for March 13. This upgrade would allow the blockchain’s mainnet to function as a proper database for Layer 2 to store data efficiently.

Beyond that, Ethereum’s co-founder Vitalik Buterin, posted recently that the development would significantly reduce gas fees.

The big hard fork that will help a lot with that is coming in three days. pic.twitter.com/u00MsaeI6W

— vitalik.eth (@VitalikButerin) March 10, 2024

As a result of this, excitement is drumming up for L2 tokens. As such, these tokens might experience a surge in demand, which could lead to higher prices.

Polygon (MATIC)

According to the 4-hour MATIC/USD chart, bears tugged back the price as it attempted to hit $1.24 on March 11. Around that time, the value hit $1.19. But bulls were quick to respond and pushed the price back up to $1.22

However, MATIC might face another resistance at $1.24, but the Chaikin Money Flow (CMF) indicated that bulls might be able to break that level. At press time, the CMF reading was 0.18, suggesting that a high level of liquidity has been flowing into the token.

This reading was also proof of buying pressure. Should this continue, MATIC’s price action coil will hit $1.50 in a highly bullish scenario. At the same time, traders should look out for pullbacks. Should rejection occur at $1.24, MATIC might decline to $1.16.

MATIC/USD 4-Hour Chart

A more bearish case could send the token to $1.13, which has served as a major support area. However, the Relative Strength Index (RSI) showed that the decline looked unlikely considering the increasing buying momentum MATIC had.

Immutable (IMX)

An interesting thing about Immutable is its fundamentals as a Layer 2 project and its capabilities in the gaming sector. A combination of these reasons is why the IMX token registered a 30.16% increase in the last 30 days.

On a technical level, IMX displayed a bullish structure, which could see the price climb higher than $3.55. As of this writing, the 9 EMA (blue) had crossed over the 20 EMA (yellow), indicating a short-term bullish trend for the token.

While the 9 EMA (blue) was at $3.47, the 20 EMA (yellow) was at $3.33. To validate the bullish prospects, IMX must not slide below the 9 EMA. Doing this might drive the price below $3.15. But a bullish forecast remained the likely option, as the price might rise above $4.50 within a few weeks.

IMX/USD 4-Hour Chart

Optimism (OP)

At press time, the OP/USD 4-hour chart was in recovery mode after the price plunged to $4.52 on March 10. If the bullish momentum continues, the price of the token might hit $5. But first, bulls might need to deal with a hurdle at $4.66.

A successful breach of that region could drive OP’s price higher. However, if resistance prevails, the value of OP might slide below $4.40.

Furthermore, indications from the MACD showed that buyers were not in full control as the 26 EMA (orange) was above the 12 EMA (orange). The MACD reading, being negative, also reinforced this notion.

OP/USD 4-Hour Chart

As it stands, OP could retrace. But if buyers increase their intensity, the tides might change, and bears could be forced to take the backseat.

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