Will MATIC Price Initiate Fresh Rally in February?

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The post Will MATIC Price Initiate Fresh Rally in February? appeared first on Coinpedia Fintech News

Ethereum’s layer 2 scaling solution Polygon (MATIC) has rallied by more than 56 percent since the calendar flipped in January. Trading at $1.22 Today, up approximately 11.6 percent in the past 24 hours, Polygon (MATIC) is just a few steps away from regaining its pre-FTX momentum. However, analysts expect MATIC to experience high resistance around $1.3, which will act as a crucial decision point.

According to on-chain analytics firm Jarvis Labs, Polygon (MATIC) will have to convert the $1.3 psychological resistance to strong support for the bull case scenario to extend in the coming weeks.

“Breakout of such a long consolidation range should not be taken lightly, although there are warning signs of a pullback as well. With the ZK2023 Mainnet announcement and release coming up, Matic might surprise us,” Jarvis Lab noted.

Polygon (MATIC) Market Outlook

The polygon ecosystem is a great beneficiary of Ethereum’s high network congestion and DeFi growth. More decentralized applications and institutional investors entering the crypto market are opting to tap on Polygon’s scalable and secure network to build DeFi protocols.

According to aggregate data provided by defillama, the Polygon network has a total value locked (TVL) of about $1.23 billion. Among the top protocols that have locked assets on the Polygon network include AAVE, Quickswap, and Balancer with $335M, $180M, and $170M respectively.

With the MATIC price recording high volatility on the daily time frame, Jarvis Labs has cautioned traders to be careful.

“When 30d price volatility goes up on Matic, it does not typically end well for the price action in short term. Right now, we see both price and volatility metric up on the 30d frame,” the analytics firm indicated.