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Polygon Price Climbs Ahead of Napoli Hard Fork — Can MATIC Continue Moving Up?

Last Updated March 22, 2024 3:05 PM
Nikola Lazic
Last Updated March 22, 2024 3:05 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • The Napoli hard fork boosts Ethereum scalability, helping MATIC to rise 10%.
  • RIP-7212 introduces groundbreaking interoperability and efficiency.
  • Future upgrades focus on reducing fees, expanding developer capabilities.

The Polygon sidechain has taken a significant leap in enhancing Ethereum’s scalability with the launch of the Napoli hard fork. This update marks a significant step in blockchain development. It incorporates key elements from Ethereum’s Dencun upgrade and introduces the innovative RIP-7212, heralding enhanced interoperability and efficiency.

Polygon’s move brought attention to the price of MATIC, causing an increase of 10% on March 20 when the upgrade was released. However, as the price encountered strong resistance, it showed signs of struggle. Can it keep up the upward momentum?

The Napoli Hard Fork and MATIC

The hard fork includes crucial updates from the Ethereum’s Dencun upgrade.

Notably, it activates  RIP-7212 on the Polygon PoS sidechain, a first for the network.

RIP-7212, created by RollCall, brings precompile support for the secp256r1 curve, enhancing interoperability with widespread technologies.

 

Additionally, Polygon is preparing for the Feijoa upgrade. This will introduce EIP-4844, a feature from Dencun aimed at reducing transaction fees, demonstrating Polygon‘s dedication to Ethereum’s scalability efforts.

David Silverman from Polygon Labs acknowledges the critical role of RollCall and other Layer 2 solutions in Ethereum’s scaling strategy, viewing them as key players in innovation and user engagement within the ecosystem.

Polygon (MATIC) Price Prediction 2024

MATIC‘s price peaked at on March 13 and made a downturn below $1. This move aligns with the horizontal resistance line that extends from its all-time high. This positioning also suggests that the bear market concluded with the last dip to $0.50 on October 19 last year, marking the start of a trend breaching the triangle’s resistance.

Daily chart.
MATIC potentially making a breakout.

There’s also the possibility that the market’s recovery has been extended by two additional movements. The upward trend from October 19 could represent the second wave in a five-wave correction sequence. According to this analysis, MATIC might retest the ascending support at around $0.60 before embarking on the next bullish cycle.

A pivotal moment will be the potential breakout above the descending resistance. If MATIC faces rejection at this level and begins to decline, it’s more likely to approach the ascending support again.

When it attempted to do so, but with no success, an immediate rejection occurred. But as it now looks for support, we are about to see if there is strength behind the upward momentum or if this will end as a fakeout. 

Conversely, if MATIC’s price surpasses $1, we aim for the next milestone at $2.60, with the prospect of achieving a new all-time high beyond $3.

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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