- Polygon MATIC price has been in a strong bullish trend in the past few weeks.
- There are concerns about what will happen after Ethereum merge.
Polygon MATIC price has made a strong rebound in the past few weeks as Ethereum merge countdown continues. The coin rose to a high of $$0.8890, which was about 180% above the lowest level in July of this year.
What will happen to Polygon after merge?
Polygon is the biggest layer-2 platform in the blockchain industry. It competes with other popular scaling projects like Optimism and Loopring.
The work of layer-2 blockchains is relatively simple in that they help to supercharge and accelerate the performance of other blockchains. Most scaling projects focus on Ethereum since it is the biggest smart contract platform in the world.
Therefore, there have been concerns about what will happen to Polygon and other scaling projects like Immutable X after the Ethereum merge.
Merge is a process where the proof-of-work (PoW) Ethereum will combine with the Beacon Chain. It is simply a transition will make it more energy efficient and more secure. In addition, it will lay the groundwork for more upgrades like sharding, which will make it much faster.
Therefore, many Polygon investors are concerned about the need for layer-2 networks after the upgrade. Besides, Ethereum will now become significantly faster and more cost-effective.
Learn more about how to buy Polygon.
However, in reality, this view is wrong. For one, the merge will be a change of consensus and not an expansion of network capacity. As a result, it will not fix gas fees and increase its speed. Therefore, there is a likelihood that Polygon will continue seeing demand after the merge.
Polygon MATIC price has also rallied because of the ongoing adoption. For example, this week, Fireblocks and Tokeny Drive announced a partnership to provide a turnkey and enterprise-grade solution for tokenization on Polygon. Other recent companies that have adopted Polygon were New Canvas, Robinhood, and GameSwifts.
MATIC price forecast
The daily chart shows that the MATIC price has been in a strong bullish trend in the past few weeks. The coin has moved slightly below the 23.6% Fibonacci Retracement level. It has also formed an inverted head and shoulders pattern.
The coin has moved above the 25-day and 50-day moving averages. Also, the MACD has moved slightly above the neutral point. Therefore, the coin will likely continue rising as bulls target the next key resistance level at $1.50, which was about 70% above the current level.
