- The Polygon price has done well in the past few months.
- Its price has rebounded this week as part of the cryptocurrencies rally.
- But MATIC has also formed a head and shoulders pattern.
The Polygon price has held steady in the past few days as part of the cryptocurrencies rally. The coin is trading at $1.800, which is about 38% above the lowest point this month.
Polygon growth continues
Polygon is a layer-2 blockchain platform that enables developers to scale their applications. It is a popular network whose native coin has a market capitalization of more than $12 billion.
Many developers have embraced Polygon because of the popularity of Ethereum. While Ethereum is a slow platform, it has a large market share in its industry.
According to Polygon, it has helped to scale over 7,000 dApps. The biggest DeFi apps built using Polygon are Aave, Curve Finance, PolyMarket, and QuickSwap among others. It has also helped to scale NFT platforms like Decentraland, Aavegotchi, GhostMarket, and Minty.
Polygon has also been used to build apps in other industries like DEXes, oracles, payments, and the metaverse among others. This growth explains why the Polygon price has done well in the past few months.
The most recent catalyst that has propelled Polygon higher is the fact that the developers raised $450 million from a group of investors like Sequoia, Softbank, and Tiger Global. They will use these funds to grow the platform.
The MATIC price has also rallied this week as global risks eased after Russia announced that it will start pulling some of its troops from its border with Ukraine. As a result, the price of most cryptocurrencies and stocks jumped on Tuesday. Bitcoin and Ethereum prices jumed by more than 2% in the past 24 hours.
The next key catalyst for the Polygon price will be the latest US retail sales numbers. Analysts expect the data will show that retail sales jumped sharply in January after they slipped in December.
Polygon price prediction
The daily chart shows that the MATIC price has been under intense pressure in the past few months. It has fallen by more than 38% from the highest level in December. Still, the price is above the ascending trendline that is shown in blue. It is also trading at the same level as the 50-day and 25-day moving averages.
A closer look shows that it has formed a head and shoulders pattern. Therefore, while Polygon has a bright future ahead, there are concerns that it will have a bearish breakout because of the H&S pattern.
