Polygon Could Surge 35% After Month-Long Consolidation Amid Integration With Witness Chain

Polygon, the renowned blockchain network known for tackling scalability challenges, has announced a groundbreaking integration with Witness Chain, an Eigenlayer AVS (Augmented Validation System). This strategic move aims to unlock a unified future for DePINs (Decentralized Personal Identifiable Networks) and their coordination layer.

As of press time, Polygon (MATIC) is currently trading at $0.72, down 2.82% in the last 24 hours. It holds a market cap of over $7 billion and a 24-hour trading volume of over $696 billion, up 84.98% in the last 24 hours

On this integration lies the utilization of Polygon's Chain Development Kit (CDK), a powerful tool designed to facilitate the DePIN Coordination Layer (DCL). The CDK will enable the Witness Chain Zero-Knowledge Layer 2 to establish a consensus and verification protocol for the physical state of DePINs.

The vision behind the DCL is to create a seamless ecosystem where resources can flow effortlessly across various DePIN networks. This breakthrough paves the way for the development of next-generation Decentralized Applications (dApps) tailored specifically for the DePIN ecosystem, unlocking a new realm of possibilities.

Polygon's CDK engine has been instrumental in driving real-world use cases, further solidifying the network's position as a leading force in the blockchain industry. By enabling the DCL through its integration with Witness Chain, Polygon is poised to facilitate the creation of innovative applications that leverage the power of DePINs.

MATIC Poised for a Breakout?

After a 54% correction from its high of $1.29 in mid-March, MATIC has been consolidating below a key resistance zone for over a month.

Despite the consolidation, the price has been respecting an ascending trendline, which could fuel a breakout past the resistance level. Notably, MATIC has been rejected three times at this level, suggesting that additional catalysts may be necessary to propel a successful breakout.

Key Metrics Signaling a Bullish Momentum

Several key metrics indicate a potential bullish momentum for MATIC. The long-short ratio, which represents the amount of a security available for short selling versus the amount actually borrowed and sold, has been cumulatively growing over the past several days. A high long-short ratio is considered a barometer of positive investor expectations.

Also, according to Santiment, the trading volume for MATIC has been consistently growing, indicating increasing interest and participation from market participants. The RSI currently stands at 54, suggesting that the bullish momentum has been resilient in recent days, with room for further bullish activity should the bulls decide to gear up and break above the resistance level.

The Moving Average Convergence Divergence (MACD) indicator is currently slightly below the zero line but has been improving well in recent days. While still below the zero line, the MACD line is above the signal line, signaling bullish momentum. 

The Bollinger Bands have narrowed, indicating less volatility as witnessed in the current consolidation phase. 

If MATIC can break past the resistance level, the price is likely to rally 35% to a target aligned with the ascending trendline. However, if rejected for the fourth time, it could potentially drop further to the $0.5 low or the horizontal support level.