Briefly –
- Polygon has seen its price bouncing from its monthly swing low.
- The rally comes as DeFi witness impressive performance.
- Let’s discuss why MATIC might rebound by nearly 30% in the coming sessions.
Polygon had its value rebounding on Wednesday as the crypto market registers a somewhat cautious rally. The lucrative actions have MATIC-USD surging by over 4% towards $1.3645. With that, Polygon touched its highest mark since last week Monday. Meanwhile, the crypto remains 24% beneath its monthly peak.
DeFi Boosts MATIC
Polygon is a layer two network that has seen relatively fast growth recently, helping makers supercharge their ETH applications. The crypto projects aim to solve challenges facing ETH’s ecosystem, including interoperability issues, slow speed, and limited scalability.
Polygon has experienced impressive growth over the last month. That comes after NFT, gaming, and DeFi sectors saw remarkable progress. Also, it received a boost as the Ethereum platform becomes expensive and congested to house most crypto enthusiasts.
That means that most crypto platforms moved to the Polygon network, helping MATIC to surge. MATIC is Polygon’s network native token. According to decentralized finance Llama, the Polygon ecosystem has nearly 28 DeFi sites. The platforms have a substantial total value locked (TVL) of over $4.82 billion, an impressive figure since it didn’t exist some months ago.
Popular DeFi projects in Polygon include Aave, with a total value lock of over $1.96 billion, Curve boosting a $388 million on value locked, and Quickswap, which has its TVL of over $850 million. Remember, Polygon had its TVL above 10 billion at its June peak.
Also, Gary Gensler’s Tuesday testimony has supported Polygon bounce. The SEC Chair told the Senate Banking Committee that he has no problem with the DeFi space. Moreover, the crypto started surging as market players purchased the dip following the US inflation data this week. Furthermore, the recent EY partnership has helped MATIC uptrends.
MATIC Price Forecast
According to the daily chart, MATIC has hiked over the past 48 consecutive hours. That had the alt surging from $1.0935, a weekly low, towards its current value, $1.3800. With that, the crypto moved beyond the ascending channel’s lower line. It also tagged the 50% FIB retracement, along with the 25- and 50-day MAs.
The asset has chances to climb to $1.800 in the short-term, along with the channel’s upper level and briefly beyond the 38.2% retracement zone. That would translate to a 33% ascent. However, a plunge beneath $1.100 will cancel the bullish case.
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