Polygon announced via a blog post on Monday that its Polygon zkEVM is now available for public testnet. However, MATIC has been underperforming over the last few hours.
MATIC, the native coin of the Polygon ecosystem, is down by more than 2% over the last 24 hours. At press time, MATIC is trading at $0.8063 per coin.
The poor performance comes despite Polygon announcing its Polygon zkEVM Public Testnet a few hours ago.
The future of Ethereum is #onPolygon.🦄💫
When we unveiled Polygon #zkEVM in July, it was a milestone not only for Polygon, but also for Ethereum & Web3.
We're proud to announce Polygon zkEVM Public Testnet, the world's 1st open source zkEVM network!https://t.co/bfrFr8XwK8
— Polygon | Aggregated (@0xPolygon) October 10, 2022
According to the team, the Polygon Zero-knowledge Ethereum Virtual Machine (zkEVM) is an Ethereum-equivalent ecosystem that comes with cross-compatibility to existing smart contracts, developer tools and wallets built on Ethereum and Polygon PoS.
Polygon added that some of the biggest EVM-based DeFi platforms, such as Aave and Uniswap, will be amongst the first protocols to deploy on the zkEVM Testnet.
However, the launch of Polygon zkEVM wasn’t enough to push MATIC higher over the past few hours.
MATIC’s poor performance comes despite the broader cryptocurrency market performing well in the last few hours. The total crypto market cap is above $900 billion, as the market has added more than 4% to its value in the last 24 hours.
Key levels to watch
The MATIC/USD 4-hour chart is bearish, as Polygon has been underperforming over the last 24 hours.
MATIC/USD Chart By TradingView
The MACD line is below the neutral zone, indicating that bears are currently in control of the MATIC market. The 14-day relative strength index of 38 shows that MATIC could soon enter the oversold region if the negative momentum is not sustained.
If the bears remain in charge, MATIC could drop below the $0.7882 support level over the next few hours.
In the event of an extended bearish run, MATIC could slip toward the $0.7338 support level in the near term.
However, the broader market is bullish, and that could see MATIC recover from its losses over the next few hours. If that happens, MATIC could toward the $0.8607 resistance level before the end of the day.