Polygon MATIC price appears to be consolidating before a big move. The price of the native asset of the Polygon network has remained sideways this week as Bitcoin price kept fondling with the $28000 level. Nevertheless, Polygon price is still 2.14% up for the week.
On Thursday, the BTC price is trading below $28,000 once again after repeated attempts to reclaim the key level. The sideways chop by the biggest cryptocurrency has caused a sell-off in altcoins. Polygon Matic is trading at $1.12 after losing 1.63% during today’s trading session.
Polygon TVL Drops Amid Roll-Ups Hype
Due to the recent airdrop of Arbitrum tokens, investors are moving the capital to the new zkEVM chains to be eligible for any future airdrops. This has led to an increase in network activity on zkSync, Scroll, and other protocols under development. This has adversely affected the growth of the Polygon blockchain, as its TVL has decreased over the past couple of months. This has also affected the Polygon MATIC price, which is down 28.5% from its YTD peak.
According to DeFi Llama, the network TVL currently stands at $1.09 bn, which is 10% down since February 2023. Aave is the biggest dapp on the network, with $320 million locked in the lending platform. Quickswap and Balancer (V2) are the other major dapps with $158.88 million and $109.94 million TVL, respectively.
Polygon MATIC Price Trades In Ascending Channel
The following Polygon price chart shows the formation of an ascending channel. The bottom of this channel acts as a support while its top acts as a resistance. So far, the price has failed to break out of this channel despite multiple attempts. The recent lower low on the daily chart suggests that another retest of the bottom of the channel is around the corner.
On a higher timeframe, my Polygon MATIC price prediction will remain bearish as long as it stays below $1.76. This level comes from the confluence of the swing high and the fib retracement level on the daily chart. I’ll keep posting my updated MATIC analysis on my free Telegram channel, which you are welcome to join.
