The Polygon price has bounced back after the remarkable decline during the weekend. MATIC, its native token, is trading at $2.32, which is about 50% above the lowest level during the weekend. It has jumped by more than 29,000% this year and is a few points below the all-time high.
MATIC rebounds
Cryptocurrency prices declined sharply last weekend. This decline was led by Bitcoin, which dropped to about $42,000.
Analysts have attributed this decline to several factors. According to Barrons, the coins declined because of the rising fears of the Omicron variant on key assets. The variant could lead to more disruptions around the world.
However, in reality, more lockdowns in the developed world would be positive for cryptocurrency prices. For one, it would lead to more fiscal support by some of the top governments like the US and UK. Also, it would lead to an extended period of easy money policies.
Barrons also attributed the drop to a statement by Jerome Powell. In testimony in Congress last week, the Fed chair warned that the bank will get more aggressive in tapering assets in the coming meeting. A hawkish Fed tends to be bearish for Bitcoin and other cryptocurrency prices.
Polygon price has rebounded in line with the overall recovery of cryptocurrencies like Bitcoin and Ethereum. Also, other assets like stocks, crude oil, and other commodities have jumped.
Meanwhile, activity within the Polygon ecosystem has been relatively strong recently. According to DeFi Llama, there are now about 123 DeFi projects built using Polygon’s technology.
These coins have a total value locked of more than $5.53 billion. This makes it the 7th biggest smart contract platform in the world. At its peak, Polygon’s DeFi platforms had more than $10 billion in TVL.
The MATIC price is also rising after reports emerged that some venture capitalists were circling the company. Sequoia Capital India and Steadview are considering backing the developers by buying tokens worth between $50 million and $150 million.
Polygon price prediction
The daily chart shows that the Polygon price has made a spectacular recovery in the past few days. It has risen by about 15% from its lowest level this weekend. It has also formed an ascending channel that is shown in black. It is now slightly below the upper side of this channel. The coin has also risen above the 50-day moving average.
A closer look also shows that MATIC has formed an ascending double-top pattern. Therefore, while there is a likelihood that the coin will continue its recovery, we can’t rule out a drop to the lower side of the channel.
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