Polygon (MATIC) started to stabilize somewhat after a sharp drop earlier in the day. Even as sentiment in the cryptocurrency market has increased, other cryptocurrencies have not experienced this much volatility lately. At the time of writing, MATIC/USD is trading around $1.11.
The MATIC token has been facing pressure since the beginning of this week. The reason for this is the submission of reports on the successful hacking of the SafeDollar DeFi protocol running on the system. Hackers camped out with around $248,000 worth of hard money from the SafeDollar smart contract, causing its value to drop to zero, raising concerns about the security of the Polygon network.
While this latest DeFi hack has caused some skepticism among investors over the capabilities of the Polygon system, there are some strong fundamentals that offer some support to the MATIC token in the current downtrend. SmartDefi, a consumer-centric application aimed at encouraging more users to invest and trade in the crypto space, was designed on the Polygon network. SmartDefi is getting ready to be launched soon. Calling itself the RobinHood equivalent for the crypto industry, the company claims it’s the first consumer app built on the Polygon network.
polygon; It has confirmed plans to launch a multi-purpose, scalable data availability layer called Avail. This is a very promising development for the coin. This general purpose blockchain network aims to provide scalable data for use in standalone chains, sidechains and other L2 solutions.
Figure 1. Polygon (MATIC) price analysis
On the H4 chart of MATIC/USD, most of the moving averages and the MACD indicator indicate a bearish trend among traders. However, the momentum indicator is also showing some buy signals.
The price is poised to approach the pivot point at $1.14 and confirmation of bullish sentiment can only occur once buyers manage to break through this level. If the uptrend strengthens, we could see the price of MATIC rise as high as $1.37 before meeting resistance.