A Positive Development On Polygon Network Could Propel MATIC Price 20% Higher

MATIC price was trading in the red just above the $1.0 psychological level but was up 0.2% on the day. Crypto prices were flashing green at the time of writing as bulls attempted to kickstart a recovery. MATIC buyers were also battling to continue yesterday's uptrend bolstered by recent news about ongoing developments on the Polygon network.

Polygon Labs Announces The Launch Of zkEVM Bridge

Polygon Labs, the development team behind the Polygon network and its native token MATIC has announced a strategic partnership recently formed with Google Cloud. According to the report, the deal is a multi-year partnership with Google's cloud computing division that will see Google Cloud leverage a fully managed node hosting service to provide customers with automatic access to Polygon blockchain nodes.

In addition, Google Cloud will also contribute cloud services that bolster Polygon's new zkEVM scaling solution. While readying for this development, Polygon Labs had earlier unveiled the Polygon zkEVM, a revolutionary innovation set to enhance the user experience (UX) while amplifying the potential of the Ethereum.

This development allows users to withdraw funds from the Ethereum mainnet in as little as 30-60 minutes while growing support for ERC-20 and ERC-777 tokens.

Positive Network Could Bolster MATIC Price To $1.2

After coiling up below the 200-day Simple Moving Average (SMA) for a few days, MATIC price appears ready to finally shatter this resistance, drawing on the strength from the recent positive developments on the network.

At the time of writing, altcoin was fighting overhead pressure from the 200-day SMA at $1.078. A daily candlestick close above this level could send the Polygon asset up toward its target with more roadblocks emerging from the 50-day and 100-day SMAs at $1.1055 and $1.1550 respectively.

Overcoming these supplier congestion zones and turning them into support could attract sidelined investors who could buy in for FOMO and fuel the uptrend. Such a move could see the MATIC price rise to tag the $1.200 resistance level, representing a 20% uptick from the current price. Traders could expect MATIC's upside to be capped here in the short term.

In highly ambitious situations, however, Polygon could go a step higher to the $1.377 resistance level and later the February 18 swing high above $1.56. This would bring the total gains to 56%.

MATIC/USD Daily Chart

The slow moving 50-day SMA and the Relative Strength Index (RSI) had began tipping up, suggesting that the bulls were re-entering the market. This signal from these trend-following technical indicators added credence to the Polygon's positive outlook.

Conversely, if bears regain control of the market, Polygon price could drop below the immediate support at $0.950 before a neck down toward $0.754.  Such a move would invalidate the bullish thesis and completely undo all the gains made since the beginning of the year.