- Polygon MATIC price has been in a strong bullish trend.
- It has formed an inverted head and shoulders pattern.
- The coin has more upside in the near term.
Polygon price has made a strong recovery in the past few days as investors buy the coin’s dip. MATIC has risen to $0.50, which is about 56% above the lowest level this month. Its total market cap has jumped to more than $4 billion.
Why is Polygon rising?
Polygon is a leading blockchain project that helps to supercharge applications built in Ethereum. It is a layer-2 network that has been embraced by hundreds of blockchain projects, including major players like Aave, QuickSwap, and Curve Finance.
Polygon has also been expanding its platform in order to make it more effective. Its main layer 2 platform is a layer 2 scaling platform that achieves unprecedented transaction speed and cost savings by using side-chains. It uses Plasma bridging framework to ensure asset security.
Polygon recently launched Hermez, a scalable payments platform that uses zero-knowledge (zk-rollup) technology. This is a technology that is used to present and publicly record the validity of transactions in Ethereum. It can process over 2,000 transactions per second.
Most recently, Polygon launched Polygon ID, a blockchain-native identity system with programmable privacy.
While Polygon’s platform has been growing, the ongoing sell-off in cryptocurrencies has had an impact on the network. For example, the total value locked (TVL) in Polygon has crashed from an all-time high of $10.53 billion to about $1.63 billion. This makes it the sixth biggest platform in the world after Ethereum, BNB, Tron, Avalanche, and Solana.
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A closer look at most assets in Polygon’s DeFi ecosystem are relatively tiny. Only three projects have a TVL of over $100 million.
It is unclear why the MATIC price is soaring. A likely reason is that the bounce is in line with the performance of other cryptocurrencies. Another one is that people are simply buying the dip following last week’s crash.
MATIC price prediction
Turning to the four-hour chart, we see that the MATIC price has been in a strong bullish trend in the past few days.
Along this rebound, the 25-day and 50-day moving averages have made a bullish crossover, which is a positive sign. At the same time, it has moved above $0.4490, which was the neckline of the inverted head and shoulders pattern.
Therefore, the outlook for the Polygon price is bullish, with the initial resistance level being at $0.5652, where it struggled moving below in March. A move above this level will lead to the next resistance at $0.63.
