Key Takeaways:
- Network activity on Polygon spiked after a hint of a zkEVM token airdrop.
- Bearish signal for MATIC as it moves inside a rising wedge pattern
NEW DELHI (CoinChapter.com) — Ethereum scaling solution Polygon attracted increased activity on its zkEVM network. The activity spike was a result of a likely chance of an airdrop.
On May 10, Polygon co-founder Sandeep Nailwal hinted at a possibility of a ‘massive airdrop‘ of ‘an existing token‘ related to the zkEVM ecosystem. Nailwal was replying to a tweet by crypto user ‘noodles,’ who commented on Polygon zkEVM’s slow TVL growth.
Angel investor Jason Choi also commented on the tweet, stating that there is a massive gap between the hype surrounding zk rollups and the actual demand for them. However, Choi was optimistic that the gap would close “over next year.”
Moreover, Nailwal took the opportunity to note that the meteoric rise in TVL of other protocols was likely due to airdrop anticipation. The Polygon co-founder stated that the platform’s zkEVM ecosystem was “getting ready” to introduce critical infrastructure deployments.
Furthermore, Nailwal noted that an airdrop might be in the future.
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If there is one thing you can’t doubt Polygon on, it would be adoption. Don’t worry on it, first it will rain, then it would POUR
Sandeep Nailwal wrote on Twitter
Mihailo Bjelic, another co-founder at Polygon, claimed he was happy with the “slow, gradual growth of users and capital.“
According to Bjelic, drawing significant investment and engagement toward a product still in its early stages would be irresponsible.
MATIC Price Forms Bearish Wedge Pattern
MATIC price has formed a bearish technical pattern called the ‘Rising Wedge.’
Two upwards-sloping and converging trendlines, joining higher highs and higher lows, form the said structure. Declining trading volumes often accompany a breakdown below the pattern.
The price target of the pattern is equal to the height of the back of the wedge. If the token breaks below the bearish pattern, MATIC’s price could drop 65% from current levels to $0.3 if the Polygon token confirms the pattern.
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Meanwhile, the Polygon token continues to consolidate above the $0.84 support level. MATIC price has been crabbing above the support level since May 9. Moreover, long upper and lower wicks on daily candles suggest indecisiveness in market participants.
MATIC price rose a mere 1.6% to form a daily high near $0.88 on MaHowever, if19. If bears continue to push the Polygon token price down, MATIC might drop to $0.84. Moreover, failure of the immediate support level could result in MATIC price testing support level near $0.74 before recovering.
Conversely, if the increased network activity translates as a bullish cue for the Polygon token, MATIC price might rise to the 20-day EMA (red wave) resistance near $0.9.
Furthermore, breaking and consolidating above the immediate resistance level might help the Polygon token price challenge the 100-day EMA (blue wave) and 200-day EMA (green wave) resistance confluence near the psychologically vital $1 price level before retreating.
The RSI for the Polygon token is neutral, clocking at 37.96 on the daily chart.
