- Polygon Labs has announced its Polygon zkEVM is now live.
- MATIC, the native Polygon token is trading 8% down this past week and 3% down in the past 24 hours.
- The technical outlook for MATIC on the daily chart suggets bears have an advantage.
Polygon price remains just above $1.08, with the cryptocurrency poised near the critical $1.00 level amid a market lull for most altcoins.
But while MATIC has shed about 8% of its value over the past week, there’s a sense of positivity hovering around the Ethereum scaling project. In particular, the community is reveling in the latest development involving Polygon – the launch of the blockchain protocol’s highly anticipated zero-knowledge based network zkEVM.
Polygon zkEVM mainnet beta went live at 10 am EDT and saw Ethereum co-founder Vitalik Buterin perform “the symbolic first transaction” at 10.30 am. Polygon zkEVM, which has been in development since last year, not only offers more scalability but also brings cheaper transactions to users.
The moment we’ve all been waiting for – Polygon #zkEVM Mainnet Beta is LIVE with @VitalikButerin performing the symbolic first transaction.
👏🏿 Permissionless
👏🏾 Public
👏🏽 Fast finality
👏🏼 Leading EVM-equivalent zkEVM
👏🏻 Completely open-sourceMore 👇🏻https://t.co/Xo4mbhnASh
— Polygon | Aggregated (@0xPolygon) March 27, 2023
The zkEVM launch has attracted over 50 projects from across the crypto ecosystem, including cryptocurrency, Web3 and blockchain gaming.
Polygon price outlook as zkEVM launches on mainnet
Polygon traded lower since price rejected around $1.25 on 18 March, with a double top formation coinciding with the latest dip to lows of $1.06.
Polygon price on the daily chart. Source: TradingView
The technical outlook on the daily chart suggests bears have a slight advantage, with the daily Relative Strength Index (RSI) sloping below the middle band. The daily Moving Average Convergence Divergence (MACD) is also below the signal line.
Bulls are likely to rely on the ascending trendline (green line), but if this breaks, MATIC/USD could retreat to horizontal support around $1.04. Further breakdown could push bulls to $0.93 and likely the main support zone near $0.75.
MATIC price – will it explode higher after zKEVM launch?
The broader crypto market is paring recent gains, with all the top 10 cryptocurrencies trading lower on Monday morning. The action contrasts with a positive open for US stocks as traditional financial markets bounce on fresh positivity after the sale of Silicon Valley Bank.
While bears hold the advantage, MATIC price can ride a flip across crypto to test recent supply zones. This includes the price level marked by the 50-day exponential moving average, which currently provides an immediate supply wall near $1.14.
If upside momentum surfaces, the short term outlook is where Polygon’s price retests $1.25 and possibly $1.55.