Polygon (MATIC) price, an Ethereum scaling solution, has recently witnessed a modest uptick in its MATIC token price. Over the previous week, however, the token predominantly exhibited a downward trend. Despite this, attempts at a price recovery are proving to be challenging.
Polygon Price Gains As New $POL Token Debuts
Polygon price has initiated a major upgrade by introducing the POL token on its mainnet, supplanting the previously used $MATIC. This shift occurred on September 4th, marking a significant step in the Polygon 2.0 strategy. The POL token retains all functionalities of its predecessor, including roles in staking and network fees.
Moreover, POL brings improved features aimed at enhancing security and scalability. These advancements also facilitate staking across multiple chains. This transition underscores Polygon’s commitment to fostering robust growth within its ecosystem.
Is $1 Possible for MATIC After the Recent Market Rebound?
Polygon price has experienced a fluctuation in the past 24 hours, indicating a volatile market day. The layer 2 blockchain hovers above $0.37, a crucial support level. As of reporting time, the MATIC price is trading at $0.374, slightly increasing by 1.14%. This increase follows a significant spike that saw the price briefly touching $0.3786 before retreating.
The daily technical indicators for MATIC Network present a mixed signal to traders and investors. The Relative Strength Index (RSI) is neutral at 41.85, suggesting that MATIC is neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) indicates a bearish trend. The histogram’s movement is below the zero line, and the MACD line trails below the signal line.
Polygon Price Chart| Source: TradingView
According to data from Santiment, the MVRV (Market Value to Realized Value) Ratio for MATIC has displayed significant fluctuations over the past six months. Notably, there was a sharp spike in early May when the MVRV ratio exceeded 95%. This suggests that most holders would have made a profit if they had sold their MATIC at that time.
Following this peak, the ratio plummeted, reaching a low of around -70.90% as of September 7, indicating that most holders would incur losses if they sold their holdings now. This dramatic change may reflect shifting investor sentiment and market conditions.
Source- Santiment
Polygon price could experience a notable ascent if it surpasses the resistance at $0.40. This breakthrough may pave the way for a target of $0.50, which could further propel the cryptocurrency to test the $0.55 level. The post-POL Migration phase holds promise. It could significantly bolster Polygon’s value, driving it up by 168% to $1.
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