Polygon (MATIC) price is treading on shaky ground as traders book profits following the rally from last week to highs seen last in mid-August around $0.65. The leading Ethereum layer 2 scaling protocol broke out of a falling wedge pattern backed by support at $0.5.
Like many other cryptos, MATIC price has experienced a record increase in volatility and liquidity with its 24-hour trading volume growing to $475 million. Polygon currently ranks #14 among other digital assets, inclusive of stablecoins like USDT and USDC. It boasts $5.8 billion in market capitalization, sitting behind Chainlink (LINK) with $6.2 billion.
Can Polygon’s POL Usher In The Bull Run For MATIC Price?
MATIC price rally has taken a breather over the last 24 hours, sliding 4% to trade at $0.62 at the time of writing. Bitcoin price and most altcoins appear to be rolling back the gains, possibly to allow for liquidity to build up for more breakouts.
Hence, the minor dip in MATIC price is unlikely to trigger a sell-off, especially with the technical outlook on the daily chart remaining bullish, not to mention, the positive sentiment across the crypto market backed by optimism around the potential greenlighting of a BTC spot exchange-traded fund (ETF) in the coming months.
Meanwhile, MATIC could solely decouple from the rest of the altcoins as the protocol moves closer to a major upgrade, Polygon 2.0. According to a press release sent to media platforms.
In a post shared on X (formerly Twitter), Polygon Labs said that the POL token upgrade has been launched on the Ethereum mainnet as part of the roadmap to the ultimate release of the Polygon 2.0 software upgrade.
The idea behind this new protocol is to usher in a new era for scaling Ethereum and building a “Value Layer of the Internet.”
“POL is a next-generation token that can power a vast ecosystem of ZK-based L2 chains,” Polygon developers elucidated. “It does that via a native re-staking protocol that allows POL holders to validate multiple chains and perform multiple roles on each of those chains, turning POL into a hyperproductive token.”
The POL token upgrade is now live on Ethereum mainnet.
Polygon 2.0, released this summer, is a roadmap for scaling Ethereum to build the Value Layer of the Internet. POL unlocks that future.
POL is a next-generation token that can power a vast ecosystem of ZK-based L2 chains.… pic.twitter.com/gmrsu0ZqLz
— Polygon (Labs) (@0xPolygonLabs) October 25, 2023
The launch of Polygon POL will phase out MATIC and become the native token powering the new ecosystem. Development toward building this Value Layer of the Internet has been ongoing for months now. Hence, the debut of POL Smart contracts on the Ethereum mainnet is not a small feat as it has taken “extensive community consultation and a successful testnet launch.”
MATIC Price Prediction As Polygon’s Rally Takes A Breather
MATIC price is holding above two key levels provided by the 21-day Exponential Moving Average (EMA) (red) at $0.562 and the 100-day EMA (blue) at $0,599.
If bulls uphold support, especially at the 100-day EMA, the uptrend is bound to continue amid calls for a sharp move above $1. The Relative Strength Index (RSI) reveals that buyers have the upper hand with its strength at 70 on the daily chart.
Another breakout is expected to close the gap to $1, but first, bulls must defeat the seller congestion at $0.65 and the subsequent hurdle presented by the 200-day EMA (purple) at $0.7.
With the Polygon 2.0 upgrade around the corner, sentiment will continue to improve in the coming weeks which could increase demand for MATIC from investors who are eyeing the POL airdrop. With this in mind, the prediction for MATIC price rally above $1 seems extremely conservative, as gains are likely to skyrocket to an all-time high of $2.92.
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