Polygon is among the best performers with subtle gains amid the second potentially gruesome week following the August sell-off. Up 2% on Monday, MATIC price is trading at $0.565. Investors seem to be booking short-term positions in Polygon amid a ground-breaking announcement made by Sandeep Naiwal, the founder of the crypto project.
MATIC Price Rebounds on Polygon POL
The development team at Polygon has recently announced a huge upgrade that will bring to life a new token called Polygon POL. It is “a technical upgrade of the native asset of the Polygon network,” an article on the website reads in part.
“POL is the next generation protocol token, designed to become the major tool for coordination and growth of the Polygon ecosystem and the main driver of the vision of the Value Layer for the Internet,” the team explained.
According to Naiwal, POL is the protocol that will ensure users reap the benefits of “multi-chain staking without the added risks of restaking. With the Polygon 2.0 proposal, the Polygon Ecosystem will expand from a single chain to an ecosystem of L2s that can easily interoperate and share liquidity with each other.”
POL is the next level protocol for two-dimension restaking that “fully avoids reliance on trusted 3rd parties, creating fewer vectors of centralization.” The token has been designed from the ground up, achieving the third-generation token standard.
POL is a massive technical upgrade to MATIC
POL delivers the benefits of multi-chain staking without the added risks of restaking. With the Polygon 2.0 proposal, the Polygon Ecosystem will expand from a single chain to an ecosystem of L2s that can easily interoperate and share…
— Sandeep Nailwal | sandeep. polygon 💜 (@sandeepnailwal) August 28, 2023
MATIC Price On The Move To $1.2
MATIC price is back in the green and ready to climb through various hurdles to recoup the losses incurred following the sell-off from July highs of $0.902 to $0.525 – the current support.
Traders seem ready to seek exposure to MATIC longs now that the Moving Average Convergence Divergence (MACD) indicator is ready to flash a buy signal.
In this case, traders would be looking out for the MACD line in blue to cross below the signal line in red. The general uptrend of the momentum indicator to the mean line (0.00) and later into the positive region implies that the trend reversal would be substantial.
Before triggering the buy orders, traders should consider waiting for MATIC price to confirm support at $0.55. The first profit target lies at $0.65 with the 50-day Exponential Moving Average (EMA) (red).
Likely to mark the beginning of a significant uptrend would be a break above the multi-month descending trendline. Such a breakout would be accompanied by surging volume and a sharp climb, possibly 61.8% – measured from June’s support at $0.516 to $1.2.
The release of POL, although still in development, would be the catalyst for such a move if the crypto market structure weakens further or fails to improve. Already there are signs of the US Federal Reserve hiking interest rates in September. Investors in risk assets like BTC and crypto have been hoping for a pause from the tight monetary policy to allow the markets to breathe.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
