- Polygon price stays in a downtrend since January 12, bearing the brunt of a broader market crash.
- MATIC might lengthen the autumn to the $0.70 psychological stage amid bearish technicals and a risky market.
- The bullish thesis can be invalidated upon a break and shut above the $0.97 resistance stage.
- The community is getting ready to launch blockchain aggregation layer, AggLayer in February, in direction of liquidity unification.
Polygon (MATIC) price downtrend has culminated in a virtually 30% fall from the January 11 peak of $0.95 to the Tuesday low of $0.69. The stoop was the aftermath of broader market crash, with Bitcoin (BTC) price liquidating up to $130 million when it first began. The dump impressed volatility out there, with most altcoins struggling within the aftermath, together with MATIC.
Additionally Learn: MATIC price risks a 7% fall even as the network empowers the next wave of DeFi on Polygon zkEVM
Polygon community prepares for ‘AggLayer’ debut in February
The Polygon community is planning to introduce a blockchain aggregation layer in February. The answer christened “AggLayer,” will deal with the unification of liquidity, connecting blockchains with zero-knowledge proofs. Particularly, builders can be in a position to join blockchains with zero information proofs, leveraging Ethereum for settlement.
Till now, blockchain scaling had 2 paradigms: Monolithic & Modular
Introducing the following one: Aggregation
A novel resolution combining the advantages of monolithic & modular designs by unifying liquidity by way of protected, near-instant atomic cross-chain txs utilizing ZK proofs.
Feb Mainnet … pic.twitter.com/mE0qssoWyJ
— Polygon (Labs) (@0xPolygonLabs) January 24, 2024
The answer will confirm equity in safety throughout modular and monolithic chains, together with these throughout the Polygon ecosystem. This makes it an integral a part of Polygon 2.0, the network’s subsequent iteration. An excerpt from the announcement reads, “As a central part of Polygon 2.0, AggLayer will use ZK proofs to create a seamless, aggregated setting that appears like a single chain – whilst every chain within the ecosystem stays sovereign.”
Polygon price outlook with $0.70 in sight
The Polygon price downtrend is probably going to lengthen to the $0.70 psychological stage, almost 4% beneath present ranges. It comes amid rising overhead strain with each the 100- and 50-day Easy Transferring Averages (SMAs) offering resistance at $0.79 and $0.86 ranges respectively.
The Relative Energy Index (RSI) can be beneath the 50 stage, pointing to a weak price power, whereas its normal southbound transfer suggests falling momentum. Making issues worse, each the Superior Oscillator (AO) and the Transferring Common Convergence Divergence (MACD) indicators are in adverse territory, displaying the bears have the higher hand.
With this, it’s believable that Polygon price might slip previous the $0.70 psychological stage to tag the $0.60 psychological stage, final examined in October. This could be the dire case, constituting a 17% fall beneath present ranges.
MATIC/USDT 1-day chart
However, if the bulls come again to the market, MATIC price might flip the $0.73 resistance into help earlier than focusing on the 100- and 50-day SMAs at $0.79 and $0.86 ranges respectively. In a extremely bullish case, the features might see MATIC lengthen previous the $0.90 psychological stage earlier than tagging the $0.97 blockade.
To substantiate the continuation of the uptrend, the Polygon price should foray into the availability zone between $0.98 and $1.04, with a break and shut above its midline at $1.01 being the primary signal.