After hitting a new record high earlier this year, MATIC (Polygon) dropped by 52.74% on March 14. The altcoin’s recovery afterwards was supposed to be important and long-term. MATIC’s recent uptick has been significant, but there are still questions about its sustainability.
Matic Rises Back Up
Trading at $2.05 AUD ($1.52), the altcoin is up from its local low of $1.84 AUD ($1.36), which was last seen by MATIC six months ago in October 2021. A lot of its bullishness was from the general market’s recovery, which helped push prices up steadily.
The price indicators were under a similar influence, and after a month, the Relative Strength Index (RSI) moved into the “bullish” zone. In addition, the MACD has also increased in terms of bullishness following last week’s bullish crossover.
There hasn’t been a long-term uptrend yet, but it might show up on the charts tomorrow if MATIC closes another green candle. In fact, the Parabolic SAR’s markers are already nearing the point where they’ll flip their positions.
Outside Of What The Charts Say
Even though MATIC has only risen by 12%, its investors are already behind it in the Decentralized Finance (Defi) market.
Over the last four days, the total value locked (TVL) on the chain has increased by $540 AUD million, with the Curve Protocol alone yielding roughly $135 AUD million.
Thanks to Polygon’s Defi abilities, many developers are joining the chain. Currently, Polygon has more than 209 protocols deployed, making it the third most popular Defi chain in terms of dApps, after Binance Smart Chain (340) and Ethereum (570).
After TimeSwap launched its main net on Polygon, the growth of dApps is likely to be on the increase in the future.
But, even so, Polygon and MATIC need to drum up more trust from supporters on a social level. This is indeed important when their fans have had dwindling faith, given that the altcoin has fallen into a bad sentiment area.
MATIC will tell if any uptrend it sees on the charts is sustainable depending on how the altcoin changes these metrics.
