Polygon crawls back as Polymarket volume spikes

Polygon’s price rebounded slightly on Tuesday as the crypto fear and greed index moved back into the greed zone.

Polygon has become a key player in the blockchain industry, largely due to Polymarket, a platform that has gained popularity as a prediction market. Data shows that the largest prediction market on the network holds over $2.6 billion in assets.

Polymarket operates on Polygon, as users must deposit USD Coin (USDC) on Polygon’s network to participate in trading.

Polygon has also seen a reduction in its share of the decentralized exchange industry. Its DEX volume in October was $5.1 billion, much lower than Base’s $25 billion and Arbitrum’s $15 billion. This decline is notable as Polygon was one of the first mainstream layer-2 networks.

Polygon is attempting to recover

The 4-hour chart shows that the Polygon token bottomed at $0.3050 on Oct. 25 and has rebounded to $0.3330, its highest level since Oct. 25.

It remains below the 23.6% Fibonacci retracement level and the 50-period and 25-period Exponential Moving Averages.

The two lines of the MACD indicator have formed a bullish crossover pattern, a commonly observed bullish signal. Additionally, the Relative Strength Index is pointing upward and has moved to the neutral level of 50.

Therefore, Polygon’s price will likely continue rising as bulls target the 50% retracement level at $0.3750.