Is MATIC in a buy zone?

The Polygon (MATIC/USD) price is crawling back after the spectacular decline that happened recently. The coin is trading at $1.6042, which is a few points above the weekend low of $1.30 as investors wait for the latest Federal Reserve interest rate decision.

MATIC rebounds

Polygon is a leading layer-2 blockchain project whose main goal is to accelerate or supercharge applications built in the Ethereum ecosystem.

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It plays an important role because most people using Ethereum have several complaints about the ecosystem.

For example, it is widely known that Ethereum has one of the lowest transaction processing time (TPS). At times, it can even take more than 10 minutes for a transaction to be completed in the network. 

Also, transaction costs in Ethereum’s network are not cheap. The average transaction cost is usually more than $30. 

Therefore, these inefficiencies explain why people are actively looking for alternatives to Ethereum. For example, recently, the number of Ethereum-killers has increased. They include platforms like Avalanche, Terra, and the Binance Smart Chain (BSc). 

Another type of project solving the challenges are known as layer-2 apps. These are platforms that seek to supercharge the performance of Ethereum apps. Polygon is the biggest of them while the others are Immutable X, Harmony, and Loopring.

According to DeFi Llama, there are more than 180 apps that have moved to the Polygon ecosystem. These apps include the likes of Aave, Curve Finance, and Uniswap. The total value locked (TVL) in the ecosystem is worth more than $12 billion.

The Polygon price is bouncing back as investors wait for the upcoming Federal Reserve interest rate decision. The bank is expected to sound a bit hawkish today. However, some analysts believe that cryptocurrencies and stocks will do well as the new normal starts.

Polygon price prediction

The four-hour chart shows that the MATIC price has been in a strong bullish trend in the past two days. It has managed to erase some of the losses it made a few weeks. Still, the coin is below the 25-day and 50-day moving averages while oscillators like the Relative Strength Index (RSI) and MACD have pointed higher.

Therefore, there is a likelihood that the Polygon price will bounce back as bulls target the next key resistance at $1.75. However, in the medium term, the coin will continue with the bearish trend.

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