Read Here
Matic Price Analysis
In the last couple of days, the ALT has failed consequently to maintain strong support above the $1 level. Major resistance was forming at around $1.02 levels. If the market responds in the right way, we could see another target forming at around $1.06. Judging by the present sentiments of the market which is a little grim, if Matic could push above the $1.06 levels, in that case, it would help in recovering the bullish momentum.
However if such things do not happen, in that case, Matic could further slide down to $.98. Any further fall will check how far the bears could take the ALT, where the target has been set at around $0.96 and $0.90 respectively. Right at this moment, the charts suggest that Matic is down and out and there’s a sharp decline in the buying pressure as evident from the red volume bar as mentioned on the chart.
What Does the TA Say For Matic?
The TA says that at $1.14, Matic was performing well; however, as the market sentiments turned bearish at the backdrop of BTC correcting, a large selling pressure ensued and buyers simply were left off at the coast.
RSI has dropped substantially below the halfway point, which says that the token has been overbought and now the reversal has been in trend. At the same time, the 20-Day SMA is below the 50-Day SMA, which further shows that sellers have been the one responsible for the conflagration. It is expected that if Matic could possibly outsmart the present narrative, it could mean that we are indeed bracing up for the reversal ahead. However, at a larger picture, it looks highly non-correlated when we speak of an upside because the bollinger bands have also been showing extreme price volatility in the upcoming days. It would mean that we might see further downside for Matic in the upcoming days.
Any Supportive News For Matic Which Could Trigger a Rally?
Though Matic has been highly lauded for optimizing the gas costs on the Ethereum chain, it cannot be ignored that sometimes gas costs do climb up during peak hours. As a result of that, the expected hardfork will introduce new changes which might help in optimizing the gas costs. WIth that being said, it will be very convenient to anticipate and optimize the gas costs, which is exclusively essential for driving massive adoption.
At the same time, Matic is also planning for the ZK-EVM. The ZK-EVM will bolster further development and help in building on top of the Polygon chain with the existing assembly languages. Right now developers have to face a lot of challenges while deploying computation algorithms across different blockchain ecosystems. However compatibility in the best interest for the Matic/Polygon chain would further aid in interoperability and we could seemingly witness better scalability and performance in the long run. However it will be interesting to see how all the given updates and changes respond to the bear market which is expected to stretch further.
