MATIC price eyes $0.70 despite Polygon network’s plans to launch blockchain aggregation layer


  • Polygon price remains in a downtrend since January 12, bearing the brunt of a broader market crash.
  • MATIC could extend the fall to the $0.70 psychological level amid bearish technicals and a volatile market.
  • The bullish thesis will be invalidated upon a break and close above the $0.97 resistance level.
  • The network is preparing to launch blockchain aggregation layer, AggLayer in February, towards liquidity unification.

Polygon (MATIC) price downtrend has culminated in a nearly 30% fall from the January 11 peak of $0.95 to the Tuesday low of $0.69. The slump was the aftermath of broader market crash, with Bitcoin (BTC) price liquidating up to $130 million when it first started. The dump inspired volatility in the market, with most altcoins suffering in the aftermath, including MATIC.

Also Read: MATIC price risks a 7% fall even as the network empowers the next wave of DeFi on Polygon zkEVM

Polygon network prepares for 'AggLayer' debut in February

The Polygon network is planning to introduce a blockchain aggregation layer in February. The solution christened “AggLayer,” will focus on the unification of liquidity, connecting blockchains with zero-knowledge proofs. Specifically, developers will be able to connect blockchains with zero knowledge proofs, leveraging Ethereum for settlement.

The solution will ascertain fairness in security across modular and monolithic chains, including those within the Polygon ecosystem. This makes it an integral part of Polygon 2.0, the network’s next iteration. An excerpt from the announcement reads, “As a central component of Polygon 2.0, AggLayer will use ZK proofs to create a seamless, aggregated environment that feels like a single chain – even as each chain in the ecosystem remains sovereign.”

Polygon price outlook with $0.70 in sight

The Polygon price downtrend is likely to extend to the $0.70 psychological level, nearly 4% below current levels. It comes amid growing overhead pressure with both the 100- and 50-day Simple Moving Averages (SMAs) providing resistance at $0.79 and $0.86 levels respectively.

The Relative Strength Index (RSI) is also below the 50 level, pointing to a weak price strength, while its general southbound move suggests falling momentum. Making matters worse, both the Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD) indicators are in negative territory, showing the bears have the upper hand.

With this, it is plausible that Polygon price could slip past the $0.70 psychological level to tag the $0.60 psychological level, last tested in October. This would be the dire case, constituting a 17% fall below current levels.

MATIC/USDT 1-day chart

On the other hand, if the bulls come back to the market, MATIC price could flip the $0.73 resistance into support before targeting the 100- and 50-day SMAs at $0.79 and $0.86 levels respectively. In a highly bullish case, the gains could see MATIC extend past the $0.90 psychological level before tagging the $0.97 blockade.

To confirm the continuation of the uptrend, the Polygon price must foray into the supply zone between $0.98 and $1.04, with a break and close above its midline at $1.01 being the first sign.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

This week could be explosive for ETH: Ethereum ETFs to debut in the US on Tuesday

This week could be explosive for ETH: Ethereum ETFs to debut in the US on Tuesday

Ethereum (ETH) is down nearly 1% on Monday as the Securities & Exchange Commission (SEC) confirmed via its website on Tuesday that it has given the final approval for spot ETH ETFs. Considering the ETH ETF launch and the upcoming Bitcoin Conference, this week could prove crucial for Ethereum.

More Ethereum News

SEC gives final approval for Ethereum ETFs to begin trading

SEC gives final approval for Ethereum ETFs to begin trading

The Securities and Exchange Commission (SEC) approved the S-1 registration statements of spot Ethereum ETF issuers on Monday, making it the second digital asset ETF to go live in the US, according to the latest filings on its website. The approval is also visible across the websites of the various asset managers that applied for the product.

More Ethereum News

Could Donald Trump and Elon Musk provide Bitcoin's bullish spark?

Could Donald Trump and Elon Musk provide Bitcoin's bullish spark?

Trump could use Justice Department's 200,000 BTC as headstart for potential Bitcoin reserve, says analyst. Elon Musk hints at potential Bitcoin endorsement after US dollar value destruction post and laser eyes profile picture. The bearish crowd has remained silent since Bitcoin's two-week rebound.

More Bitcoin News

Crypto investment products continue positive run after $1.35 billion net inflows

Crypto investment products continue positive run after $1.35 billion net inflows

CoinShares' weekly report shows that crypto investment products saw a third consecutive week of inflows. Bitcoin saw inflows of $1.27 billion, with short-bitcoin recording more outflows. Ethereum-based products outperformed Solana on year-to-date inflows.

More Cryptocurrencies News

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.

Read full analysis

BTC

ETH

XRP