Key Takeaways:
- Polygon announced several new developments and partnerships.
- However, bearish technical patterns and a recent exploit might hamper MATIC’s price action.
NEW DELHI (CoinChapter.com) — Polygon has announced a few new partnerships and developments for the Ethereum scaling platform that would help expand the platform’s ecosystem.
The blockchain platform has partnered with Google Cloud to “accelerate the adoption of its core protocols,” including Polygon PoS and the Polygon zkEVM. In addition, Google stated the partnership would help developers to build and launch Web 3.0 products on Polygon.
Moreover, Google Cloud would leverage its Blockchain Node Engine to help developers easily manage node hosting services. The engine configures and runs Polygon PoS nodes once support for Polygon becomes available.
Today’s announcement with Google Cloud aims to increase transaction throughput enabling use cases in gaming, supply chain management, and DeFi. This will pave the way for even more businesses to embrace blockchain technology through Polygon
said Ryan Wyatt, President, Polygon Labs
Additionally, Google Cloud has begun offering a one-click deployment of Polygon PoS nodes. Google Cloud would also help optimize Polygon zkEVM scaling, with initial tests revealing a significant improvement in transaction speed and cost with Google Cloud usage.
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In other news, investment firm Franklin Templeton announced the launch of its blockchain-based Franklin OnChain U.S. Government Money Fund on the Polygon blockchain.
Extending the reach of the Franklin OnChain U.S. Government Money Fund to Polygon enables the Fund to be further compatible with the rest of the digital ecosystem, specifically through an Ethereum-based blockchain
said Roger Bayston, Head of Digital Assets at Franklin Templeton
The firm asserted that blockchain-integrated systems benefitted Fund’s users by increasing security, reducing costs, and ensuring faster transaction speed.
Bears Bearing Down On MATIC Price
Meanwhile, bearish pressure against Polygon’s native token continues to rise. An exploit on Polygon-based DeFi lending protocol 0VIX resulted in hackers getting away with $2 million. Attackers manipulated flaws in the platform’s oracle mechanisms.
0VIX requested the attackers to return the funds or face legal action. However, in writing, the attackers had not responded to the platform’s request. Failure to recover funds would likely impact investors’ trust in the platform, hurting MATIC’s price.
Furthermore, the Polygon token has formed a bearish technical pattern called the ‘bear flag.’.
The pattern forms when a cryptocurrency’s prices chart a sharp countertrend (the flag) after a short-lived trend. Flag patterns usually indicate a reversal of the countertrend. In addition, in a bearish pattern, volume might not always decline during consolidation.
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Since an uptrend marks the consolidation period after a sharp downtrend, investors move in due to FUD from the price fall. Hence, higher-than-average volumes often accompany the consolidation period.
Traders calculate the bear flag pattern’s price target by subtracting the flagpole’s length from the breakout price level. Hence, per the rules of technical analysis, MATIC’s price might drop to $0.156, a fall of more than 84% from its current price levels.
MATIC Price Chart
While the bear flag forecasts bearish risks for the Polygon token in the long-term, the Polygon token’s recent price action has resulted in MATIC’s 50-day EMA (blue wave) dropping below its 100-day EMA (purple wave), forming a ‘Death Cross.’
Traders consider the pattern an indicator of negative market sentiment and a sell signal. Hence, Polygon’s price could drop to its support level near $0.96. Breaching the immediate support level might force the MATIC price to test support near $0.9 before recovering.
MATIC price has been crabbing during the last week since April 23. The Polygon token price dropped nearly 3% to form a daily low near $0.96 before recovering.
If bulls enter the market, MATIC’s price would likely rise to its resistance level near $1.01. Moreover, breaking and consolidating above the immediate resistance level might help the Polygon token price target its 100-day EMA resistance near $1.1 before downside corrections pare gains.
The relative strength index for MATIC remained neutral, clocking at 38.26 on the daily chart.
