After hitting a new record earlier this year, MATIC fell 52.74% on March 14. The recovery of the alt since then would be not only essential, but also sustainable. While MATIC’s latest surge has been vital, questions remain about its sustainability.
MATIC rises again
The altcoin is trading at $1.52 and has risen from its local low of $1.36 – a level last visited by MATIC in October 2021, six months ago. Much of its bullishness came from the recovery of the broader market, with the latter pushing prices upward in a stable manner.
A similar impact can also be seen on price indicators, with the Relative Strength Index (RSI) moving into the bullish region after one month. Furthermore, the MACD has also envisioned a rise in bullishness after last week’s bullish crossover.
MATIC price promotion | Source: TradingView – Coin-Crypto
Now, while no serious uptrend is visible yet, it could be visible in the charts tomorrow, provided MATIC can close another green candle by then. In fact, the Parabolic SAR marks are already close to flipping their positions.
Beyond what the charts say
Moreover, with a rally of only 12%, MATIC already has the support of its investors in the market for decentralized finance (DeFi).
Total value locked (TVL) on the chain has increased by $400 million in the past four days, with the Curve protocol alone bringing in about $100 million.
Polygon’s DeFi capabilities are bringing more developers to the chain. With more than 209 protocols already implemented, Polygon is the third largest DeFi chain in terms of dApps, behind only Binance Smart Chain (340) and Ethereum (570).
MATIC Total value locked in dApps | Source: DeFi Llama – Coin-Crypto
The growth of dApps is likely to continue in the future, especially after TimeSwap launched its mainnet on Polygon.
Still, Polygon and MATIC need to see more confidence from their supporters on the social front, as their faith has been on a wane lately. This may even be supported by the altcoin’s dip in the negative sentiment zone.
How the altcoin manages to change these metrics may determine whether an uptrend that MATIC sees will be sustainable on the charts.
Investor sentiment MATIC | Source: Santiment – Coin-Crypto