Polygon supports the first cross-chain stablecoin UND, as MATIC price looks to climb 53%

MATIC price has been on a tear, but due to the recent slowdown of the cryptocurrency market, the altcoin is undergoing a retracement. The pullback is likely to find support on a stable support level before kick-starting a new uptrend.

Polygon-based cross-chain stablecoin surfaces

Unbound Finance, a DeFi treasury for liquidity pools, announced on August 16 the launch of Polygon-based cross-chain decentralized stablecoin. While users will be able to leverage a fast, borderless stablecoin that doubles as a great fiat on and off-ramp bridge, this addition is part of the big picture.

Unbound Finance, which is working with Polygon, will utilize the Layer 2 solution’s technology to increase liquidity on Polygon-based Aumotate Market Makers (AMMs). Users can use their liquidity pools tokens from the AMMs as collateral to mint the UND stablecoin.

On this topic, Sandeep Nailwal, COO of Polygon, added,

Unbound’s dedicated development team has created something that makes all AMMs efficient and will make interesting money legos in the space further.

MATIC price awaits a trend reversal

MATIC price rallied 50% from August 9 to August 16 but failed to sustain as the cryptocurrency market experienced a pullback. As a result, Polygon has dropped roughly 18% and is teetering above the $1.25 support level.

Investors can expect a resurgence of buyers around this stable demand barrier since it served as a significant resistance from late June to mid-August.

A potential spike in buying pressure is likely to propel Polygon into a second leg-up that shatters the immediate resistance barrier at $1.43. This move indicates that the bulls are aiming for amove higher and could potentially trigger a rally to the $1.73 supply area.

In total, this run-up from $1.24 to $1.73 would represent a 40% ascent.

MATIC/USDT 12-hour chart

While the retracement might recover around the $1.25 support barrier, a potential increase in the selling pressure or investors booking profit might prevent an upswing.

If this development pushes MATIC price to produce a decisive 12-hour candlestick close below $1.25, it will invalidate the bullish outlook. In such a case, market participants can expect further descent to $1.14 or lower.