Polygon price has been range-bound since earlier in the week even as the bulls strive to sustain the gains recorded in recent weeks. According to CoinGecko, its market cap is at $6.25 billion; placing it at position 14 in the crypto market.
What’s driving the market?
One the one hand, polygon price edged higher on Friday amid hopes that the US job market is cooling. Indeed, traders are especially keen on the nonfarm payrolls data set for release later in the day. A strong labor market is one of the key pillars of the Fed’s aggressive policy tightening.
An environment of high interest rates tends to be bearish for cryptos and other riskier assets. As such, lower-than-expected job numbers will likely boost the crypto market amid renewed hopes that the Fed will go easy on the tightening in coming months.
At the same time, challenges within its network continue to curb its gains. For instance, its DeFi ecosystem has had its total value locked (TVL) drop from over $10 billion to around $1.36 billion. Over a span of 24 hours, its TVL has dropped by 1.07%.
Polygon price prediction
On Wednesday, MATIC/USD hit its highest level in three weeks at 0.8613. However, the bulls lacked enough momentum to sustain the gains, easing to an intraday low of 0.8313 on Thursday. As at the time of writing, it was at 0.8399; up by 0.73%.
On a four-hour chart, polygon price is trading above the 25 and 50-day exponential moving averages. Based on these technical indicators, I expect the altcoin to record further gains in the ensuing sessions.
In particular, 0.8200 will likely remain a steady support zone for the crypto in the short term. However, its gains may be subtle ahead of the the US nonfarm payrolls. As such, it may remain range-bound with 0.8604 as the channel’s upper border.
Even with a probable rebound, I expect polygon price to continue trading below 0.8750; a zone it last hit about three weeks ago. On the flip side, strong US jobs data may give the bears an opportunity to push MATIC/USD lower to 0.8021.