Will Polygon Price Hit $1 After POL Token Migration on September?
Polygon (MATIC) price has been experiencing significant challenges over the past few weeks, with its token facing a steady decline in value. This price drop reflects the broader bearish sentiment prevailing across the cryptocurrency market.
Despite these setbacks, investors are cautiously optimistic as the upcoming MATIC to POL upgrade approaches. This transition could reverse the current downward trend and bring positive momentum back to the token.
Polygon Price Forecast: Will MATIC See A Rebound After POL Transition
Polygon announces a significant network upgrade set for September 4th. The upgrade marks a transition from MATIC to POL. POL will replace MATIC as the principal gas and staking token on Polygon’s PoS network. This initial change is part of a broader plan to integrate POL deeply into the AggLayer in future updates.
The shift to POL from MATIC is not just a technical update. It reflects Polygon’s strategy for more robust network performance and efficiency. The market anticipates this upgrade could trigger a positive trend in Polygon’s valuation. This follows recent downturns that have affected its market position.
Will MATIC Price Recover soon?
Over the past 24 hours, the Polygon price has experienced notable fluctuations in its market activity, indicating a downtrend. As of the reporting time, the MATIC price hovered at $0.4005, marking a decrease of 3%. However, according to CoinMarketCap data, the trading volume surged by 40% to $203 million, indicating heightened market activity.
The daily technical indicators for MATIC on Binance continue the downward trend. The Moving Average Convergence Divergence (MACD) indicator remains in negative territory. This indicates a strong bearish sentiment in the market, as the MACD line (blue) is below the signal line (orange).
Polygon Price Chart| Source: TradingView
In recent developments, the Market Value to Realized Value (MVRV) ratio for MATIC has shown significant fluctuations. This has intriguing implications for its price movements. Over the past few months, the MVRV ratio has sharply declined. This indicates that the average profit or loss of holders who acquired MATIC tokens within the last seven days has turned increasingly negative. The downward trajectory of the MVRV values into negative territory is evident. By the beginning of September, it reached as low as -20.39%.
Source- Santiment
The Layer 2 blockchain platform might climb if it breaks through the $0.45 resistance level, setting its sights on the $0.5 mark. Such progress could eventually reach the $0.55 threshold. Further bullish momentum, particularly ahead of the Polygon Transition, may propel the price to a peak of $1.
The post Will Polygon Price Hit $1 After POL Token Migration on September? appeared first on CoinGape.