Matic Price Maintains Bullish Outlook Amid Worst Crypto Week

Summary:

Matic price bounces from a long-term trendline and a break to Sunday's high might suggest that a multi-week low could be in place.

Matic price bounces from a long-term trendline and a break to Sunday’s high might suggest that a multi-week low could be in place. The networks fundamentals also remain strong and suggest higher prices.

Over the last 2 years, several blockchain platforms have been launched that claim to be the layer 2 (L2) scaling solutions for Ethereum. However, none of them has gained as much user adoption as the Polygon Network. After launching its mainnet in 2020, it didn’t take Polygon much time to become a top L2 platform. Today, even after a rough week for all smart contract platforms, Polygon Network is still boasting a Total Locked Value (TVL) of a whopping $4.4 billion, which is down by 20% from last week.

Owing to the low fees and faster transactions on the network, the Play to Earn ecosystem has been thriving on Polygon for the past few months. While DeFi protocols have been observed to be the leading DApps on most of the platforms, crypto games are leading the DApp activity on the Polygon network. Data from DApp Radar shows that Crazy Defense Heroes and Arc8 are the leading DApps on the top L2 network. Both of these DApps are crypto games.

It is to be noted here that while crypto games are flourishing in the Polygon Ecosystem, NFTs on the network are yet to see a similar interest.

Matic Price Overview

Trading at $1.46, Matic is currently the 17^th biggest cryptocurrency by market cap. Matic price has maintained its bullish outlook even after one of the most brutal weeks for cryptocurrencies. Even though the price is nearly 55% down from its December highs, it has still not broken the uptrend on the weekly and daily charts. However, the overall bearish sentiment in the market has affected the Matic price significantly and it has breached the November lows of $1.44.

Even after making new lows, the price of Polygon Network’s native asset bounced off the trend line and managed a daily closing above 0.618 Fib level at $1.50l., of the bullish push from the summer of 2021 low, to its all-time high.

To signify a proper bottom the price needs to regain $1.68, Sunday’s high, in short term, before targeting the Fibonacci retracement level of 61.8% at 2.3$, this Fibonacci target is from the slide of the all-time high to the current 2022 low at 1.29. However, a daily or weekly close below its November 2022 lows at 1.44, can send Matic price to its weekly support at $1.05-$1.10 region.