Polygon MATIC whale activity continues to be bullish on the project, with large holders buying 55 million $MATIC since January 16.
On-chain data from SantimentFeed shows that this equates to roughly $60 million of investment – a strong show of confidence in the long-term prospects of Polygon’s core token MATIC. The news has sent MATIC prices up a whopping 9.37%. MATIC is currently trading at $1.36 after spiking to as high as $01.38.
Polygon’s robust ecosystem development and pioneering launch of zkEVM have investors feeling enthusiastic about MATIC’s price.
Polygon Labs, the operational crew for Polygon, declared that their beta version of zero-knowledge Ethereum Virtual Machine (zkEVM) would be released on March 27th, 2023. It’s conceivable that by propelling a public mainnet prior to zkSync and Scroll, Polygons stands a great chance at having a first-mover advantage in this sector.
MATIC/USD Technical Analysis on a 4-hour chart
Polygon technical analysis also seems to be predicting a bullish run, with the current MATIC/USD trend showing a clear break of the downward trendline that had been in place since early February. The oscillators are currently trending upwards and have crossed into overbought territory on multiple timeframes. This could indicate further gains for MATIC if bulls can continue to push prices higher.
Polygon prices are facing resistance at the Fibonacci extension level of $1.42, with key support established at $1.18 – $1.19. A breakout above this Fibonacci level could signal the start of a sustained bullish run for MATIC/USD, with potential targets set at the next Fibonacci extension levels of $1.54 and $1.64, respectively.
The MATIC/USD pair has formed bullish engulfing candlesticks on the 4-hour chart, indicating that bulls are firmly in control of price direction. MATIC is also trading above all key moving averages and the 200 SMA – a sign of sustained bullishness for this altcoin.
A minor pullback is imminent as the technical indicators are showing an overbought condition, but the long-term outlook remains positive for this altcoin.
The RSI is residing above the 70.0 level, while the MACD line is well placed above the signal line, indicating that the current uptrend is likely to continue in the near future. Therefore, a minor pullback may be expected if the profit-taking investors kick in before further upside is seen.
Overall, bullish remain in control of price action, and investors are advised to watch for a break above the Fibonacci extension level of $1.42. If MATIC/USD can stay above this level, then it should set up a strong bullish run with potential targets set at the next Fibonacci extension levels of $1.54 and $1.64.
Ultimately, bulls remain firmly in control of price action, with investor confidence bolstered by Polygon’s upcoming zkEVM launch and whale activity. Investors should look to enter long positions if the MATIC/USD pair can break above the Fibonacci extension level of $1.42.
The short-term outlook for this altcoin looks positive, with potential targets set at the next Fibonacci extension levels of $1.54 and $1.64, respectively.
