The Polygon (MATIC) price staged a strong recovery in July. The coin’s price declined by more than 47% between July 7 and 20th. It fell to a monthly low of $0.6237 and then rebounded by more than 70% to the current $1.07.
Polygon adoption continues
For starters, Polygon is a blockchain project that was previously known as MATIC. It is a layer 2 project that helps to scale projects built on Ethereum’s network. In the past few months, many of the existing projects have announced that they would launch projects on the network.
The biggest platform on Polygon is Aave, which is the biggest DeFi project with more than $13 billion in total value locked. Other networks that have joined the network are The Graph, Harvest, Telcoin, PlasmaFinance, and IDEX, among others. This trend has made Polygon to be one of the biggest blockchain projects in the world with a market cap of more than $6.8 billion.
This week, focus will be on the Smart Contract Summit, which will take place virtually. The event will focus on the smart contact industry and the ongoing trends. This is an important event that will have speakers from Polygon, Hedera Hashgraph, Synthetic, Compound, and Avalanche.
The Polygon price will also react to the latest price action in Bitcoin prices. After soaring to more than $41,000 during the weekend, the price retreated slightly to the current $40,000. Therefore, if Bitcoin can keep the upward momentum, there is a possibility that the price of MATIC will keep rising. This is simply because the two coins have a close correlation.
Polygon price August prediction
The two-hour chart shows that the MATIC price has done well in the past two weeks. This has seen it move above the 25-day and 50-day moving averages.
Notably, the coin has formed what seems like an inverse head and shoulders pattern. It has also formed a rising channel that is shown in greeen. The price is now slightly above the lower side of the channel. It is still slightly below the important resistance at $1.1774, which was the highest level on July 5.
Therefore, I suspect that the coin will maintain the bullish momentum in August. If this happens, the next key level to watch will be $2. However, on the flip side, a drop below $1 will invalidate this view.