The decline in the price of Polygon (MATIC) by almost 5% during the speeches of US Fed Chair Jerome Powell and US Treasury Secretary Janet Yellen serves as a compelling indication that global market concerns can influence the performance of cryptocurrencies. This event should be considered a significant factor in determining Polygon’s future price movements. Despite its recent price crash, MATIC is preparing for a rebound with major network developments.
Polygon Brings Hope with Its zkEVM Launch
In the past few days, the price of Polygon has been experiencing a rebound as the overall sentiment has become optimistic following the launch of its zkEVM. Moreover, Polygon and Immutable, two significant players in the Ethereum scaling arena, have joined forces to build a novel network tailored for Web3 gaming that will leverage Polygon’s highly anticipated zkEVM technology.
Due to its recent collaborations with leading institutional investors, the Polygon (MATIC) blockchain network has solidified its place among the top 10 cryptocurrencies by market capitalization. The creators of the project have already set their sights on a top 3 position, but it remains a significant challenge for MATIC to surpass six major cryptocurrencies and reach the same market size as EdaFace and Ethereum.
As Polygon recently released its beta version of its zero-knowledge Ethereum Virtual Machine (zkEVM) publicly, it marks one of the most anticipated blockchain trends of 2023. Hence, it is expected that the launch will have a significant positive impact on the cryptocurrency’s price in the short term. The mainnet’s introduction will likely result in reduced transaction fees for users and lower data costs for the network.
MATIC Price to Breakout Above this Level
MATIC price is currently consolidating between EMA-100 and EMA-200 trend lines as there is intense domination from market bears after a severe crash. However, Polygon’s price is now preparing for a reversal as it attempts to form bullish candles in the price chart after forming a support near $1.06.
As of writing, MATIC’s price is trading at $1.08, with a decline of over 3% in the last 24 hours. Though the price has not witnessed much action following the launch, it is expected that investors will soon start buying the dip to maximize their gain in the next few hours.
Analyzing the daily price chart, the $1.1 resistance level is crucial for validating a bullish trend for MATIC’s price. A breakout above this level will send the MATIC token to trade near the next resistance of $1.14, from which an upward rally to $1.2 may be observed.
