- MATIC price has been in a strong bullish trend in the past few weeks.
- The rebound is mostly because of the upcoming Ethereum merge.
MATIC price continued its bullish trend as signs of a bottoming in the cryptocurrency industry emerged. Polygon rose to a high of $0.9075, which was slightly below July’s high of $1.01. It has risen by more than 190% from the lowest level in July, bringing its market cap to more than $6.7 billion.
Polygon rally continues
Polygon is a blockchain project whose goal is to supercharge applications created in Ethereum’s network. It scales applications by processing Ethereum transactions outside the network. In the past few months, the developers have launched other scaling solutions like Polygon Zero, Polygon Avail, Nightfall, Polygon Miden, and Polygon zkEVM.
Polygon has been used to build all types of applications in the ecosystem. Some of the top applications in the ecosystem are DeFi tokens like UMA Project, Uniswap, Aave, Curve, and SushiSwap among others. According to DeFi Llama, the network has a total value locked (TVL) of over $1.85 billion. This is significantly lower than the all-time high of over $6 billion.
Polygon price has risen sharply in the past few weeks as investors focus on the upcoming Ethereum merge. Merge is the process where the current mainnet will combine with the Beacon Chain. It is estimated to happen in September this year.
While this merge will help make Ethereum a better platform, there are concerns about layer-2 platforms like Polygon and Optimism. This is notable since these platforms are built to scale Ethereum, which is the biggest smart contract network.
Analysts believe that most developers will remain on Ethereum, which will now be significantly faster than other networks. Others believe that layer 2 platforms like Polygon will continue thriving. In a recent note, the product manager of
“Ethereum-based scaling solutions (L2) scale with ethereum, so if ethereum scales in the future (sharding), L2s also scale. if Optimism is 10x faster than L1, then Ethereum is 10x after sharding, Optimism is 100x.”
MATIC price prediction
The four-hour chart shows that Polygon price has been in a strong bullish trend in the past few weeks. It has formed an ascending channel that is shown in green. The current price is between the channel. It has risen above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved above the neutral point.
Therefore, the coin will likely keep rising as bulls target the next key resistance level at $1.50. A move below the support level at $0.8500 will invalidate the bullish view.
