Polygon Ecosystem Development Can Trigger a Price Rally. Here’s Why

MATIC has been performing well in the crypto ecosystem with pretty good gains in the last couple of days. We think recent developments in the Polygon ecosystem have pushed the price of the asset. We will analyze these activities in the asset along with the next price trajectory. So let’s begin!!

Current Market Outlook

MATIC is trading above the $0.77 price mark with a daily trading volume of more than $393 million. The asset has added more than 1% to its price over the last day. The asset has also added more than 30% to its price, with its market cap reaching $7.7 billion, according to CoinMarketCap. The future of MATIC looks promising with a huge ROI exceeding 16000%, but the asset has fallen more than 70% from its all-time high of $2.92. The Polygon ecosystem is getting its new update, which might help boost the price in the coming days. 

 CoinMarketCap: MATIC Price Chart 

The Polygon network is ready to get a new update, zero knowledge Ethereum Virtual Machine (zkEVM). Most likely the update will be launched next year.  The zkEVM project was mentioned in The Tie IO's third quarter report.

Polygon developed zkEVM as a scaling solution to improve the scalability of dApps. What does zkEVM have to do with MATIC's expansion? Let us investigate.

A Major Turn of Events for Polygon Ecosystem

Polygon recently revealed the integration of the Push protocol, formerly known as the Ethereum Push Notification Service (EPNS). This is an encouraging development in the ecosystem, because it would assist Polygon in providing better Web3-native communication with Polygon apps and active users.

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Aside from that, Polygon just revealed zkEVM, a promising way to scale Ethereum that would offer lower payments to the platform. With all of these advances in the community, the future of MATIC appears bright.

A study of MATIC on-chain indicators reveals a fairly positive picture, with most metrics indicating a likely uptick in the coming days. MATIC's 30-day Market Value to Realized Value (MVRV) Ratio, for example, has risen in the recent week. This is a promising sign. Furthermore, MATIC's exchange outflow has increased in the last two days – another bullish sign.

What’s Next?

The Santiment development activity gauge showed a considerable level of growth on the charts. This number was one as of September 29th. However, there may be an increase when the zkEVM and other features are ready to ship.

     Santiment

Polygon's network emissions have fallen dramatically after Ethereum's energy efficiency increased by 99%. Over 95% of Polygon's emissions were caused by its integration with Ethereum, and the Ethereum merger contributed to the reduction. This made Polygon more energy-efficient and appealing to projects worried about emissions in the ecosystem.

We have looked at the development in the Polygon ecosystem. Let’s now head to the technical analysis.

Technical Analysis

On the daily time chart, the support level was placed at $0.691 and the resistance level was set at $1.00. MATIC has been unable to break over a lower resistance line at $0.786 since September 19. Despite the fact that the blockchain is performing well, MATIC has been on a bearish trend for some time. The RSI was below the neutral line, while the signal and minus DI lines were both above 20. These indications indicated a downward trend.

 TradingView

According to the daily-time-frame chart, price movement was mostly sideways. If it can break through the short-term and long-term resistance levels, the price might rise above $1. If the bulls fail, a further decline may be on the cards. Polygon Nightfall, a privacy-focused rollup chain, is one of the next initiatives Polygon plans to launch. This and other enhancements may have a favorable impact on MATIC's price trend.

Conclusion

The indicators and developments appear to be mostly in MATIC's favor. However, before investing in the alt, traders and investors should exercise caution. Not financial advice. DYOR.