- Polygon price has been in a slow bullish recovery recently.
- It has formed a falling wedge and an inverted H&S pattern.
MATIC price has staged a slow recovery as cryptocurrencies and stocks bounce back. Polygon’s token was trading at $0.8100 on Wednesday, which was the highest level since September 17. It has risen by almost 20% from the lowest level this year, bringing its total market cap to more than $7.2 billion.
Polygon TVL slumps
Polygon is one of the best-known blockchain projects in the industry. It is a layer-2 platform whose goal is to supercharge applications created in Ethereum. This is important since Ethereum is well-known for its slow speeds and high transaction costs even after the merge.
Polygon has been adopted by thousands of developers. Some of the most popular apps in its ecosystem are Aave, Quickswap, Curve, and Uniswap. In all, Polygon has seen the total value locked (TVL) crash from more than $10 billion to about $1.2 billion.
Polygon is one of the most beloved layer-2 platforms. However, a closer look at its ecosystem shows that more people still prefer Ethereum products. For example, Aave has over $220 million worth of assets in Polygon and over $4 billion in Ethereum.
The same trend is true for other platforms in its ecosystem. Curve Finance has a TVL of over $5 billion in Ethereum and just $182 million in Polygon.
Learn more about how to buy Polygon.
Another key concern for Polygon in the long term is the upcoming Ethereum upgrades. While the Merge did not have an impact on Ethereum’s throughput, the next upgrades will have. For example, the introduction of sharding will see its total transaction per second (tps) soar to more than 1,000. As such, this could see Polygon struggle to compete as it is doing already.
In addition to DeFi, Polygon’s tools are also used in other key industries like games, non-fungible tokens (NFT), and the metaverse. According to CryptoSlam, Polygon’s NFTs transacted about $125k worth of NFTs in the past 24 hours. In the same period, Ethereum handled over $9 million worth of tokens.
The most recent Polygon news is that it had partnered with Shopping.io. The deal will see the fast-growing e-commerce company integrate MATIC as a form of payment.
MATIC price prediction
The daily chart shows that the Polygon price has made some gains in the past few days. In this period, it has risen by about 20% and moved to the 50-day and 25-day moving averages. The coin has remained below the 23.6% Fibonacci Retracement level while the Relative Strength Index (RSI) has moved above the neutral point.
MATIC has also formed what looks like a falling wedge and inverted head and shoulders patterns. Therefore, it will likely have a bullish breakout as buyers target the key resistance at $1.20.