– Polygon price faced a rejection from the $0.9702 resistance to hold thinly above the 50-day SMA at $0.8599.- MATIC could drop 7% to the $0.8000 psychological level, with the buck resting on the 50 SMA.- The bearish thesis will be invalidated if the price flips $0.9702 into support for a chance to test the supply zone.Polygon (MATIC) price is trading with a bearish bias, drenched just like the rest of the market as cryptocurrencies bleed.The dump is instigated by [Bitcoin](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-weekly-forecast-btc-crashes-as-gbtc-dumps-but-bullish-outlook-still-not-under-threat-202401121900), whose price is on the cliff steered by Grayscale Bitcoin Trust ( [GBTC](https://www.fxstreet.com/cryptocurrencies/news/breaking-us-sec-approves-bitcoin-spot-etf-202401102047)) redemptions whose holders are seizing the opportunity to sell after years.Also Read: [Polygon’s MATIC swept off exchanges in large volumes, token eyes recovery](https://www.fxstreet.com/cryptocurrencies/news/polygons-matic-swept-off-exchanges-in-large-volumes-token-eyes-recovery-202401101328) Polygon zkEVM empowers the next wave of DeFi The Polygon network has embarked on a commitment to empowering the next wave of decentralized finance (DeFi).
With this, it introduces the zkBuilder Decentralized Grants Program that will “support, fund, and bootstrap DeFi builders on Polygon zkEVM.” Specifically, developers are equipped to thrive in the ecosystem.
Empowering the next wave of DeFi on Polygon zkEVM.— Polygon (Labs) (@0xPolygonLabs) Introducing the zkBuilder Decentralized Grants Program, designed to support, fund, and bootstrap DeFi builders on Polygon zkEVM.
As Polygon zkEVM gears up for the next phase of growth in March, it’s important developers are… [pic.twitter.com/miCt1fRiPa] [January 13, 2024] Polygon zkEVM delivers enhanced levels of security and uptime.It is in the second stage, which is focused on responsible decentralized application (DApp) growth and activation of activity onchain.Stage one of the Polygon zkEVM Mainnet Beta has lasted the last ten months, focused on testing, scaling and growing the infrastructure.Polygon price outlook Polygon price is sitting on the support provided by the 50-day Simple Moving Average (SMA) at $0.8599, as bulls try to establish dominance in the MATIC market.The histogram bars of the Awesome Oscillator (AO) are flashing green pushing towards the positive territory, evidence of bulls mounting a recovery.If the 50-day SMA holds as support, therefore, Polygon price could recover north, extending past the $0.9000 psychological level.
In a highly bullish case, the gains could extend for the MATIC price to tag the $0.9702 blockade.While a break above this resistance level would be ideal, the extension north will only be confirmed once the price forays in the supply zone extending from $0.9833 to $1.0400.
A decisive candlestick close above its midline of $1.0116 would confirm the continuation of the uptrend.MATIC/USDT 1-day chart Conversely, if the sellers overpower the bulls, Polygon price could slip past the 50-day SMA at $0.8599, potentially extending the fall to the $0.8000 psychological level, standing 7% below the current price.
In the dire case, the fall could see [MATIC price](https://www.fxstreet.com/cryptocurrencies/news/polygons-matic-swept-off-exchanges-in-large-volumes-token-eyes-recovery-202401101328) extend a leg south to the 100-day SMA at $0.7673.Such a move would denote a 15% fall below current levels.
This thesis is also a possibility, considering the position of the Relative Strength Index (RSI) below the 50 midline.
The Moving Average Convergence Divergence (MACD) is also in the negative territory, moving below the signal line (orange band) after crossing below it on January 3.Information on these pages contains forward-looking statements that involve risks and uncertainties.Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.You should do your own thorough research before making any investment decisions.
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[More Cryptocurrencies News](https://www.fxstreet.com/cryptocurrencies/news) [PEPE selling pressure mounts as whale deposits two trillion PEPE to Binance](https://www.fxstreet.com/cryptocurrencies/news/pepe-selling-pressure-mounts-as-whale-deposits-two-trillion-pepe-to-binance-202401121244) [](https://www.fxstreet.com/cryptocurrencies/news/pepe-selling-pressure-mounts-as-whale-deposits-two-trillion-pepe-to-binance-202401121244) PEPE reserves on exchanges climbed to 40.59% of the meme coin’s total supply, as seen on Santiment.A large wallet investor deposited two trillion PEPE tokens to Binance on Friday.
[More PEPE News](https://www.fxstreet.com/cryptocurrencies/news?q=pepe&hPP=15&idx=FxsIndexPro&p=0) [Bitcoin Spot ETF race sees Grayscale capture major share of trades on day 1, BTC price hits two-year peak](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-etfs-beat-nasdaq-100-tracking-qqq-hit-double-as-many-trades-on-day-one-btc-jumps-to-two-year-peak-202401120601) [](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-etfs-beat-nasdaq-100-tracking-qqq-hit-double-as-many-trades-on-day-one-btc-jumps-to-two-year-peak-202401120601) Bitcoin Spot ETF trading volume, dominated by Grayscale’s GBTC, totaled more than $4.6 billion on Thursday.Bitcoin ETFs registered 700,000 individual trades, doubling those in the Nasdaq 100’s tracking fund QQQ.[More Bitcoin News](https://www.fxstreet.com/cryptocurrencies/news?q=&hPP=15&idx=FxsIndexPro&p=0&dFR%5BTags%5D%5B0%5D=Bitcoin) [Ripple drops IPO plan, eyes buy back of $285 million privately owned shares](https://www.fxstreet.com/cryptocurrencies/news/ripple-drops-ipo-plan-eyes-buy-back-of-285-million-privately-owned-shares-202401120844) [](https://www.fxstreet.com/cryptocurrencies/news/ripple-drops-ipo-plan-eyes-buy-back-of-285-million-privately-owned-shares-202401120844) Ripple has dropped its IPO plans and is currently in the process of buying back $285 million private shares.Ripple CEO Brad Garlinghouse reveals Ripple’s plan to buy back shares on a regular basis to provide liquidity to investors.[More Ripple News](https://www.fxstreet.com/cryptocurrencies/news?q=&hPP=15&idx=FxsIndexPro&p=0&dFR%5BTags%5D%5B0%5D=Ripple) [Bitcoin: BTC crashes as GBTC dumps, but bullish outlook still not under threat](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-weekly-forecast-btc-crashes-as-gbtc-dumps-but-bullish-outlook-still-not-under-threat-202401121900) [](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-weekly-forecast-btc-crashes-as-gbtc-dumps-but-bullish-outlook-still-not-under-threat-202401121900) Bitcoin (BTC) price action since October has been broadly bullish, consolidating within an ascending price channel.The hype around spot BTC exchange-traded funds (ETFs) played a role in nurturing this uptrend, as well as the halving event that remains on the horizon.With the spot BTC ETFs narrative priced in already after the January 10 landmark decision, traders and investors are now navigating the aftermath as the waves of institutional money meet the shores of crypto.
[Read full analysis](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-weekly-forecast-btc-crashes-as-gbtc-dumps-but-bullish-outlook-still-not-under-threat-202401121900).
