- Price analysis shows that MATIC failed to break out above $1.00.
- MATIC’s price is consolidating following a sharp sell-off from an intra-day high of $1.09.
- The launch of Polygon zkEVM main net was expected to provide a boost, but this hasn’t been the case as yet.
The MATIC/USD pair traded within a narrow range between $1.03 and $1.09, with bulls unable to break the key resistance of $1.2.The lack of any major upside momentum could be attributed to a lack of investor interest in the altcoin markets, with Bitcoin dominating the cryptocurrency market in recent days.
The launch of the Polygon zkEVM mainnet promises to bring scalability and privacy to Ethereum, which should help boost MATIC prices over time. However, for now, the MATIC/USD pair remains vulnerable to further downside pressure in the near term.
The next key support level is seen at $0.8, while a break above $1.2 could potentially invalidate the bearish outlook and push prices higher toward the next resistance level of $1.5.
Polygon opened the daily trading session trading in a horizontal channel, with the MATIC/USD pair struggling to break above $1.2. MATIC has formed lower highs at $1.09, with the price making unsuccessful attempts to break past this level.
Looking at the daily chart, MATIC has been trading inside a narrow range between $1.03 and $1.09, with the bulls unable to break the key resistance of $1.2. A move above this level is needed for MATIC to regain some upside momentum in the near term.
On the downside, support has been found at $0.8, and any further drop could push the price toward this level. The immediate support has been established at the Fibonacci 0.236 level at $0.988, which could provide a cushion if the MATIC/USD pair continues to fall.
The Fibonacci extension levels of the previous swing high of $1.09 and low of $0.80 also suggest that Polygon could struggle to make further gains in the short term, with a potential move toward the 0.382 or 0.5 levels at $1.29 and $1.44 respectively on a breakout above $1.2.
The technical indicators are signaling a bearish shift, with the MACD line in the negative zone and below the signal line. The RSI is also trending lower and hovering near the oversold region. The bears are ruling the market on all timeframes, with the price settling at $1.0476 at the moment of writing.
Looking ahead, Polygon’s bearishness may be attributed to the current retracement in the cryptocurrency market. The bulls need to establish a strong foothold above the $1.2 level to regain some upside momentum in the near term.
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Source: https://coinedition.com/matic-fails-to-break-higher-despite-launch-of-polygon-zkevm-mainnet/