Polygon (MATIC) appears to be on a recovery mode after slipping below the $1.50 level earlier in the day. Could this be a pullback before buyers build up momentum to take its price above the $2 level?

At the time of writing, MATIC/USD is trading at around $1.54 and is enjoying support from promising fundamental developments. The Layer 2 solution on Ethereum has been garnering significant interest lately ever since news broke about billionaire Mark Cuban’s investment in the blockchain network a few weeks ago.

Although the number of active users on the MATIC network remain far lower than market leader Ethereum, it has been accumulating new users at a faster rate in recent weeks. This could be the result of more users and developers switching from Ethereum to the Polygon offering, especially as Ethereum faces challenges due to high congestion and gas fees.

Speaking at a panel discussion in the DeFi Summit, investor Cuban sounded upbeat about Polygon’s future prospects, stating that it was destroying all other cryptocurrencies beyond leaders Bitcoin and Ethereum. He also added, “Now, because of what’s going on with Polygon, where they’re getting so much momentum, it’s going to be hard to catch up.”

Key Levels to Watch

On the H4 chart of MATIC/USD, most of the moving averages as well as the momentum indicator are suggesting a bullish bias. The price is comfortably above the pivot point at $1.45 and even the latest dip did not take it under this level.

Looking ahead, keep an eye out on the immediate resistance at $1.74. Buyers will have to overcome this level as they try to take Polygon’s value above the key $2 level.