Polygon (MATIC) Price Prediction July 2024 – Polygon’s Plonky3 Launch Could Skyrocket MATIC: Here’s Why!
The price of Polygon’s MATIC token defied the overall downward trend in the cryptocurrency market on Wednesday, rising more than 2% to reach $0.55.
The upward trend that has been forming over the past few weeks is what caused this spike, positioning MATIC for a possible break through of the resistance denoted by a falling wedge pattern.
Impact of Plonky3’s Launch
Investor excitement has been sparked by the announcement of the launch of Plonky3, an advanced cryptographic proving system. Many people are optimistic that this development may lead to a rise in the demand for MATIC.
Nevertheless, it remains unclear if this will be sufficient to end the current four-month correction.
Over the last four months, there has been a notable decline in MATIC, primarily due to the effects of a falling wedge pattern. MATIC’s value dropped dramatically during this time, going from $1.29 to $0.42.
The converging trendlines, which had previously functioned as levels of both resistance and support, had an impact on this decline.
Consequently, MATIC experienced a significant decline of 66.8%. But the price of MATIC has abruptly reversed and is now back at $0.55. This is in line with a larger market rebound that got underway in July.
Due to the remarkable recovery, MATIC’s value increased by 30%, bringing its market capitalization to an astounding $5.5 billion.
Though there has been a positive trend, the market is probably going to keep down. The recent bearish crossover of daily exponential moving averages (EMAs), including the 50, 100, and 200-day averages, points this direction.
MATIC’s price has just returned its 20-day moving average, suggesting a possible comeback though.
Amidst the constantly fluctuating sentiment of the market, Polygon Labs has introduced Polygon Plonky3, the latest model in its lineup of zero-knowledge (ZK) proving systems. The most recent version, Plonky3, expands upon Plonky2, which came before it.
Users can now create customized ZK Ethereum Virtual Machines (zkEVMs) or ZK Virtual Machines (zkVMs) for particular applications thanks to exciting improvements in modularity and customization.
Market Sentiment and Technical Indicators
These new developments provide speed, flexibility, and enhanced cryptographic security that fit the system for many kinds of blockchain uses. Currently open-source software, Plonky3 was published under MIT/Apache licenses.
This shows Polygon’s commitment to provide access and support community development.
This new technology is likely to make the Polygon network more useful and efficient, which could lead to more people using it and more demand for MATIC. But MATIC still needs to break through the upper boundary of the falling wedge pattern.
This is true even though its price has only gone up 1.2% recently. The Average Directional Index (ADX) indicator has gone down from 40%, which suggests that the bearish momentum is weakening.
If MATIC is able to break out from the upper trendline of the wedge, it could start a surge in bullish momentum. This could be seen as an early sign of a change in the trend. The Polygon price prediction could go up.
Possible targets are $0.76, then $0.94 as an intermediate high point, and finally $1.29 as a possible return. There will be a big step forward in making the network safer, more effective, and able to handle more users when Polygon Labs release Plonky3.
In addition to the chance of breaking out of a bearish pattern, this event could attract new momentum buyers to the market, which could mean better things for MATIC’s market performance.
Could Polygon’s Plonky3 Launch Skyrocket MATIC?
The recent 2% increase in Polygon’s bullish trend corresponds with the announcement of plonky3. This new technology has the potential to significantly increase matic’s demand and provide a boost.
Technical indicators point to a potential continuation of the downtrend, but a trend reversal could be triggered by Plonky3’s disclosure and the recent price recovery of MATIC.
Should MATIC be able to overcome the resistance level, it could set off a boost in optimistic momentum, maybe exceeding its past peak prior to the four-month downturn.
This possible breakthrough together with the developments brought about by Plonky3 point to a better future for MATIC’s market performance in the next days.
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