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MATIC Fails to Break Higher Despite Launch of Polygon zkEVM Mainnet

Polygon’s launch of its zkEVM mainnet holds promise for the future, as it offers scalability and privacy to Ethereum, which could boost MATIC prices over time. However, the immediate response to the launch has been lackluster, with MATIC failing to break out above $1.00. The cryptocurrency market has been experiencing a lack of investor interest in altcoin markets, with Bitcoin dominating the market, which has impacted MATIC’s price. The MATIC/USD pair has been trading within a narrow range between $1.03 and $1.09, and bulls have been unable to break the key resistance of $1.2.
On the downside, the next key support level is seen at $0.8, and any further drop could push the price towards this level. The immediate support has been established at the Fibonacci 0.236 level at $0.988, which could provide a cushion if the MATIC/USD pair continues to fall.

The technical indicators are signaling a bearish shift, with the MACD line in the negative zone and below the signal line. The RSI is also trending lower and hovering near the oversold region. The bears are dominating the market on all timeframes, with the price settling at $1.0476 at the time of writing.

Looking ahead, Polygon’s bearishness could be attributed to the current cryptocurrency market retracement. The bulls need to break the key resistance level of $1.2 to gain some upward momentum in the near term. If this level is broken, it could potentially invalidate the bearish outlook and push prices higher towards the next resistance level of $1.5.

In summary, while the launch of Polygon’s zkEVM mainnet holds promise for the future, the current market conditions have impacted MATIC’s price. The bulls need to break the key resistance level of $1.2 to gain some upward momentum, while the support level at $0.8 is crucial. The technical indicators are signaling a bearish shift, and the Fibonacci extension levels suggest that Polygon could struggle to make further gains in the short term.

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