• Polygon is Ethereum’s leading layer 2 blockchain and its MATIC token has been in a bearish trend since early last week.
• The launch of the zkEVM testnet on March 27th is expected to propel the MATIC price bull market.
• The market downturn is attributed to mounting regulatory pressure, especially in the United States.
Polygon MATIC Price Struggling with Bearish Wave
Ethereum’s leading layer 2 blockchain, Polygon has been attempting to overcome a stubborn bearish wave since early last week. At the time of writing, MATIC price had dropped 0.9% to exchange hands at $1.25 with bulls striving hard to protect it from slipping below support at $1.20. Technical indicators suggest that a prolonged trend reversal could be possible soon while maintaining support at $1.25 would set up bulls for an uptrend which may take them towards $1.60 and beyond $2.00.
Impending Launch of zkEVM Testnet
Polygon Labs has committed itself towards providing seamless scaling solutions for Ethereum since its inception and the launch of zkEVM testnet will be taking place on 27 March 2023 marking the beginning of a brighter future for developers on Web3 networks. Over 84,000 wallets have been created so far along with 300,000 generated blocks, 75,000 ZK proofs and deployment of more than 5,000 smart contracts amongst other milestones achieved during this period .More information about mainnet beta would be made available in upcoming few weeks with utmost priority given to security concerns associated with it .
Bear Market Pressure from Regulatory Pressure
The cryptocurrency industry as a whole has come across immense selling pressure due to increasing regulations especially in United States where Bitcoin declined by 4.38% and Ethereum by 3.34% over past seven days . This could be one of major reasons behind current downtrend experienced by Polygon but successful launch of zkEVM testnet could prove positive for MATIC token’s prospects in near future .
Uptrend Possibility If Support Maintained
Upholding support at present levels would provide opportunity for bulls to push forward resumption of uptrend aiming towards targets like $1-60 and above $2-00 respectively . Investors should keep close eye on general market conditions as well as performance of rival cryptocurrencies before making any major decision related to their investments .
It is expected that successful launch of zkEVM testnet will bring long awaited bullish momentum back into Polygon’s MATIC token thus providing investors opportunity capitalise upon it if they are ready for it . With increasing regulatory pressure , investors should also maintain cautious approach when dealing with cryptocurrencies markets due extreme volatility associated with them .