MATIC: Is it enough that its 6-month low is behind it?
After hitting a brand new all-time excessive earlier this yr, MATIC fell by 52.74% on 14 March. The alt’s restoration since then was purported to be not solely important, but in addition sustainable. Whereas MATIC’s newest uptick has been important, questions nonetheless should be raised about its sustainability.
MATIC rises again up
Buying and selling at $1.52, the altcoin is up from its native backside of $1.36 – A degree final visited by MATIC in October 2021, six months in the past. A whole lot of its bullishness got here from the broader market’s restoration, with the latter pushing the costs upwards in a steady trend.
An identical affect can also be seen on the worth indicators, with the Relative Power Index (RSI) visiting the bullish area after a month. Moreover, the MACD has additionally been picturing a hike in bullishness after final week’s bullish crossover.
Now, whereas an uptrend is but to emerge in earnest, it is likely to be seen on the charts tomorrow, offered MATIC can shut one other inexperienced candle by then. In reality, the Parabolic SAR’s markers are already near flipping their positions.
Exterior of what the charts say
Moreover, with only a 12% rally, MATIC already has the assist of its buyers within the Decentralized Finance (DeFi) market.
The whole worth locked (TVL) on the chain has risen by $400 million within the final 4 days, with the Curve Protocol alone bringing in about $100 million.
Polygon’s DeFi capabilities maintain bringing increasingly builders to the chain. With over 209 protocols already deployed, Polygon is the third largest DeFi chain when it comes to dApps, behind solely Binance Sensible Chain (340) and Ethereum (570).
The expansion of dApps is prone to proceed sooner or later, particularly after TimeSwap launched its mainnet on Polygon.
Even so, Polygon and MATIC must see extra confidence from its supporters on a social degree since their religion has been waning of late. In reality, this can be backed by the altcoin’s dip into the damaging sentiment zone.
How the altcoin manages to alter these metrics may dictate whether or not any uptrend MATIC sees will probably be sustainable on the charts.