The Polygon price remarkable recovery has stalled in the past few days. MATIC is trading at $1.2790, which is still 25% above the lowest level in September. It has a total market capitalization of more than $8.4 billion, making it the 21st biggest cryptocurrency in the world.
What is MATIC?
MATIC is the native token for the Polygon ecosystem. For starters, Polygon is a layer 2 blockchain project that helps Ethereum developers supercharge their apps. The network was built using proof-of-stake technology, making it relatively faster and efficient.
In the past few years, the number of blockchain platforms using the network has been on a strong growth path. Polygon has partnered with EY to co-develop Ethereum scaling solutions for enterprises. It is also working with established brands like Coinbase, Hermes Network.
Polygon is widely used by some of the best-known platforms in the cryptocurrencies industry. For example, it is used by Aave, the biggest DeFi platform in the world. It is also used by Aragon, C.r.e.a.m, and Filecoin, among others.
Data compiled by DeFi Llama shows that the DeFi platforms built using Polkadot have a total value locked (TVL) of more than $4.55 billion. This makes it the fifth-biggest ecosystem after Ethereum, Binance, Solana, and Terra. In terms of quantity, it has 72 projects, making it the third after Ethereum and Binance.
Like all cryptocurrencies, the Polygon price has struggled recently. Today, the price is about 28% below its all-time high. This decline is mostly because the momentum that was there in the first five months of the year has faded.
Many investors who lost money when cryptocurrencies crashed are yet to come back t the industry. Also, the funds that were when Congress passed the stimulus package have faded as more people have gone back to work.
Polygon price prediction
The four-hour chart shows that the MATIC price has found a strong support at $1.0355. It struggled moving below this level several times in September. The coin has already moved above the 25-day and 50-day moving averages. It also seems like it is forming a bullish flag pattern.
Therefore, the coin will likely break out higher in the coming days as bulls target the key resistance level at $1.50, which is about 18% above the current level. However, a drop below the key support at $1.20 will invalidate the bullish view.
Contributors
