MATIC Price Shows Strong Signs Of Dropping Heavily! These Are The Levels Traders Need To Watch Out
Though the Polygon network is not stopping bringing revolutionary developments to the platform, MATIC’s price is losing bulls confidence in maintaining its uptrend.
However, recently, the developing team has sparked bullish expectations among MATIC traders as Polygon is set to launch its zero-knowledge Ethereum Virtual Machine (zkEVM), which is an Ethereum-compatible smart contract to run on Polygon with improved speed and efficiency.
This is a significant breakthrough for Polygon, as it can potentially make the platform one of the market’s most competitive Ethereum Layer 2 solutions.
MATIC Price Shows Unstable Momentum Ahead Of zkEVM Launch
The upcoming launch of the zkEVM has been touted as a game-changer for Polygon, and many investors and analysts have high hopes for the native token MATIC’s future price potential. The zkEVM aims to address the scalability and cost issues that have plagued the Ethereum network for years, allowing Ethereum-compatible smart contracts to run on Polygon with improved speed and efficiency. This could lead to a surge in adoption and value for the platform.
Moreover, MATIC price has surged over 60% in the last month, developing a buying opportunity for Polygon’s investors. The huge developments in the Polygon network have pushed the token, creating a challenging situation for Cardano as there is a strong battle in market capitalization.
Whale investors have increased their accumulation rate as on-chain data identifies huge transactions. According to WhaleStat, MATIC whales moved over 20 million MATIC tokens in the last two days, signifying their interest ahead of the zkEVM launch.
However, despite the potential benefits of the zkEVM, the price of MATIC has yet to show a clear bullish or bearish trend leading up to the launch. This could be due to a variety of factors, including overall market volatility, investor sentiment, regulatory scrutiny, and uncertainty surrounding the actual impact of the zkEVM launch.
MATIC Price To Plunge Hard To These Levels
The price of MATIC appears to have its sights set on reaching $1.5, but recent market trends have reminded investors that this may not happen anytime soon. The latest rejection has caused the formation of a descending pattern, and the price is currently heading toward a critical support level.
As of writing, the MATIC token trades at $1.4, with a drop of 5.4% in the last 24 hours. Looking at the daily price chart, MATIC price is preparing for a minor downward retracement. If MATIC witnesses bear domination near the immediate support of $1.37, it may extend its bearish rally below the 31.8% Fib level. A drop below the EMA-20 trend line may strengthen bearish analysis, and MATIC may trade near the Bollinger band’s lower limit of $1.14.
However, the MATIC token is not far behind breaking the crucial resistance of $1.5. A weekly candle above $1.56 may send the token to its next resistance of $1.75 ahead of the zkEVM launch.