Key Takeaways:
- Deutsche Telekom has partnered with Polygon to become a validator on the network.
- However, the bullish news failed to uplift MATIC price.
NEW DELHI (CoinChapter.com) — Ethereum scaling platform Polygon has partnered with Deutsche Telekom, a Germany-based telecommunications firm worth nearly $108 billion.
The firm would become one of the validators on Polygon’s proof-of-stake network. Deutsche Telekom’s subsidiary, Deutsche Telekom MMS, would provide staking and validation services to the Polygon PoS and supernets.
The collaboration with Polygon is an important step for Deutsche Telekom MMS to fully exploit the potential of blockchain technology and enable applications suitable for mass deployment. Deutsche Telekom MMS also supports Polygon staking, contributing to the security and decentralization of the blockchain.”
Dirk Röder, Head of the Blockchain Solutions Center at Deutsche Telekom, said
The partnership with Deutsche Telekom would likely help expand the blockchain firm’s reach in Europe while highlighting the platform’s increasing adoption. Moreover, Polygon founder Sandeep Nailwal recently hinted at a possibility of a ‘massive airdrop‘ of ‘an existing token‘ in a tweet.
Moreover, Polygon has been expanding its ecosystem over the past few months.
MATIC Price Unresponsive To Bullish Cue
Meanwhile, MATIC, Polygon’s native token, remained oblivious to the bullish cues from the platform’s recent partnership. MATIC price dropped nearly 3% to reach a daily low of $0.879 on May 31 before bulls made a marginal recovery.
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The Polygon token’s 50-day EMA (purple wave) remained a formidable foe for MATIC price. The dynamic resistance rebuffed MATIC’s price rally on May 29, forcing the token to close the day with 3.4% loss.
Furthermore, bulls lost the 20-day EMA (red wave) level on May 31, highlighting the bearish pressure against the token.
If the selling pressure increases, MATIC price would likely drop to the support level near $0.84. Failure of the immediate support level might erase most of MATIC price’s 2023 gains, forcing the token to test support near $0.755 before recovering.
Conversely, if the Polygon token price starts a recovery, it would first face resistance near $0.923.
Breaking and consolidating above the immediate resistance could help instill confidence in the rally, helping MATIC price challenge the 100-day EMA (blue wave) and 200-day EMA (green wave) resistance confluence near $1.
The RSI for MATIC remained neutral, clocking at 45.48 on the daily charts.
