• Polygon Labs announced the availability of Polygon zkEVM.
  • MATIC, the native Polygon token, is down 8% over the past week and 3% over the past 24 hours.
  • The technical outlook for MATIC on the daily chart suggests that the bears have the advantage.

Porygon’s price remains just above $1.08, and while most altcoin markets are in a lull, the cryptocurrency is poised near the critical $1.00 level.

However, while MATIC has lost about 8% of its value over the past week, there is optimism about Ethereum’s scaling project. In particular, the community is enjoying the latest developments including Polygon, the launch of the blockchain protocol’s long-awaited zero-knowledge-based network zkEVM.

The Polygon zkEVM mainnet beta went live at 10am EDT and saw Ethereum co-founder Vitalik Buterin execute a “symbolic first transaction” at 10:30am. Polygon zkEVM, which has been in development since last year, will not only improve scalability, but also bring cheap transactions to users.

The launch of zkEVM has attracted over 50 projects from across the crypto ecosystem, including cryptocurrencies, Web3 and blockchain games.

Polygon price outlook when zkEVM launches on mainnet

Polygon traded lower on March 18 as the price dropped near $1.25.

Polygon prices for daily charts. sauce: TradingView

The technical outlook on the daily chart suggests a slight advantage for the bears, and the daily Relative Strength Index (RSI) is below the middle band. The daily moving average convergence divergence (MACD) is also below the signal line.

The bulls are likely to rely on the uptrend line (green line), but if it breaks, MATIC/USD could retreat to horizontal support around $1.04. A further breakdown could push the bulls to $0.93, possibly the main support zone near $0.75.

MATIC Pricing – Will it explode after zKEVM launch?

The broader crypto market has tempered its recent rally, with all of the top 10 cryptocurrencies trading lower on Monday morning. The action contrasts with a positive opening in U.S. equities as traditional financial markets bounce back with renewed vigor after the Silicon Valley Bank sale.

While the bears hold the upper hand, the MATIC price could reverse across the cryptocurrency and test the recent supply zone. This includes the price level marked by the 50-day exponential moving average, which is currently providing an immediate supply wall near $1.14.

If upward momentum emerges, the short-term outlook is for Polygon price to retest $1.25 and possibly $1.55.

By Jules

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