- Polygon price has rallied by over 320% from its lowest level in 2022.
- MATIC short liquidations have risen to over $3M in the past 3 days.
- Polygon will unveil the zkEVM mainnet in March.
Polygon price made a bullish breakout on Thursday as investors embraced a risk-on sentiment in the market. MATIC jumped to a high of $1.38, the highest point since April 2022. It has staged a remarkable comeback after rising by 320% from the lowest point in 2022.
Why is MATIC rising?
The main reason why Polygon price is soaring is that investors have embraced a risk-on sentiment in the past few days. This explains why other cryptocurrencies like Bitcoin, Ethereum, and Litecoin have rallied to their highest points in months.
The recovery is notable because it happened in a week when the alternative should be happening because of the strong economic data from the United States. Data published on Tuesday revealed that the America’s consumer price index (CPI) rose on a monthly basis.
On Wednesday, additional data revealed that retail sales jumped by 3% in January, the biggest increase in months. Additional data published on Thursday showed that the producer price index (PPI) rose by 6.0% in January, higher than the expected 5.4%. Core PPI rose by 0.5%.
Therefore, analysts believe that the Federal Reserve has more room to tighten its monetary policy in the coming months. As such, cryptocurrencies like Polygon and Bitcoin should be dropping in theory.
Read more: How to buy Polygon.
A likely reason for the rally is that short-sellers have increased liquidating their positions. According to CoinGlass, Bitcoin shorts liquidations rose to over $144 million on Wednesday. That was the biggest increase since January. The same is true with Polygon. Shorts liquidations have totaled almost $4 million in the past three days.
Meanwhile, Polygon DEXes have seen increased volumes in the past few days. In January, Polygon handled coins worth over $4.5 billion, higher than the $2.9 billion it handled in December. It has already handled over $2.9 billion, meaning that this month could pass January.
Finally, Polygon announced that it will launch its zero-knowledge EVM product. It will be launched in March after spending several months in its testnet.
Polygon price prediction
The daily chart shows that the MATIC price formed a golden cross pattern on January 25. This pattern is usually a bullish sign. It managed to move above the important resistance point at $1.30, the highest point on November 5. Polygon remains above the 50-day and 200-day moving averages.
Therefore, by crossing the resistance at $1.30, we can assume that it will continue rising as buyers target the next reference level at $1.752 (March 29 high).
