After its bullish shindig seen last week, Polygon (MATIC) price is now going the opposite direction as it continues to plunge to $0.60. MATIC is seen to have plummeted by more than 20% in comparison to its peak high of $0.97 as seen in the past couple of days. The coin’s price has dropped below the support line of $.080 and shows no sign of a slowdown.
The MATIC/USD has declined by 3.66% or at $0.74 as of this writing. CoinMarketCap is also showing a 10% slump in the 24-hour trading volume which is at $815,456.
On the brighter side, the daily chart shows the MATIC price going for a bullish or Inverted Head & Shoulder formation.
Related Reading | Polygon (MATIC) Looks Set For A Retracement After Recent Gains
Current Technicals Bearish For MATIC
The breach started on July 13 and registered a peak high of $0.97 as seen on July 18. But, the bulls weren’t able to hold on to their gains and dropped miserably. The daily chart showing two red consecutive candlesticks implies that the bears will not go up anytime soon.
Meanwhile, a breach below the $0.70 mark confirms MATIC’s dominance and that the next support is at the $0.60 mark. The current RSI is showing bearish momentum now at 50 or falls below the average line. More so, the MACD bullish indicator is also showing signs of a slowdown.
On two separate hourly time frames, Polygon was caught to be heading for a bull run in the short term. The price was captured to be going towards the descending route. It also formed the Flag & Pole pattern which is bullish and has the support level held close at 50%.
Once the current support at $0.7495 is breached, then a decline may be apparent at $0.6895.
On the other hand, if buying pressure mounts from the lower level, a surge that shoots towards the $0.8155 and $0.905 levels can be expected.
MATIC total market cap at $6.5 billion on the daily chart | Source: TradingView.com
Polygon Rolls Out ZKEVM
Polygon is popular for its remarkable improvements in terms of speed and affordability. Its efforts have been in tune with scaling ETH since the day of its launch. However, Polygon has faced enormous challenges such as when ZK rolled up its smart contracts which have restricted users as the contracts are said to be costly, incompatible, and sluggish.
But, Polygon decided to improve and resolve issues with the rollout of ZKEVM. Polygon created ZKEVM to be compatible with ETH. Now, developers can build on ZKEVM similar to Ethereum. In effect, any ETH smart contact or tool which works well with Ethereum can work too with Polygon ZKEVM. With that in mind, the ETH network can be easily leveraged to take advantage of the enhanced speed and reduced costs.
Related Reading | Solana Loses 17% Of Value As SOL Crawls Back From $35 Slide
Featured image from The Daily Hodl, chart from TradingView.com