Polygon MATIC cryptocurrency symbol, logo. Business and financial concept. Hand with smartphone, screen with crypto icon closeup
Polygon MATIC price has lost most of its Tuesday gains as the altcoins cool down after a massive rebound. On Wednesday, the BTC price retraced after hitting $28,168 last night. The biggest cryptocurrency is still up 4.82% for the week.
Due to a pullback in Bitcoin, MATIC crypto plummeted 3.1% on Wednesday. Technical analysis reveals that the bulls need to break above a key trendline to unlock a massive upside. However, the price action must be supported by the strength of Bitcoin. Most of the other altcoins are also trading lower today.
According to the latest news, Polygon Labs has launched a Chain Development Kit (CDK). The toolkit will enable the creation of customizable L2 blockchains leveraging Ethereum and Polygon’s liquidity. These L2 blockchains will be zk rollup-based.
Polygon is currently the 5th biggest blockchain in terms of total locked value (TVL). According to DeFi Llama, the network holds a TVL of $810 million. There has been a massive decline in TVL since its June 2021 peak. The TVL peaked at $9.84 billion more than two years ago. Most of the TVL decrease can be attributed to the decrease in Polygon MATIC price.
The technical analysis of the following MATIC coin chart shows that the cryptocurrency is forming a falling wedge pattern. This can be a bullish pattern if the price breaks above the upper trendline. In this scenario, bulls usually target the top of the wedge, which currently lies at $1.58.
Therefore, Polygon MATIC price prediction can flip bullish only after a breakout from the falling wedge. A more conservative price target seems to be $0.89, where lies the 200 MA on the daily chart. However, all these bullish targets will only be valid if BTC breaks above 31,000.
I’ll keep posting my updated MATIC outlook on my Twitter, where you’re welcome to follow me.
This post was last modified on Aug 30, 2023, 15:39 BST 15:39