Polygon Announces Date For MATIC To POL Token Upgrade, Price Drops 7%
July 19 2024 - 2:00AM
NEWSBTC
On Thursday, the Polygon Foundation announced the date for its
upcoming MATIC to POL upgrade after reaching a community consensus.
The long-awaited token migration will occur in less than two months
and aims to kickstart Polygon’s native token expansion. MATIC saw a
7% drop following the news. Related Reading: Memecoins Reign
Continues: Most Popular Narrative In Q2 – CoinGecko Report Save The
Date: Polygon Token Upgrade Coming Soon The Layer-2 scaling
solution for Ethereum, Polygon, revealed the highly anticipated
date for its native token upgrade. Set for September 4, the initial
phase will begin with the token migration from MATIC to POL. Per
the announcement, POL will initially replace MATIC “as the native
gas and staking token for Polygon PoS.” The upgrade went live on
the testnet on July 17 to “serve as a dress rehearsal” to identify
and fix potential issues before the mainnet migration. Upgrading
Polygon PoS from MATIC to POL is a significant undertaking that
requires the highest security possible, including robust testing.
(…) A testnet migration allows users, developers, and
infrastructure providers to familiarize themselves with the
processes of upgrading, ensuring technical validation and
minimizing disruptions during the mainnet upgrade. During the
subsequent phases, the POL upgrade aims to expand Polygon’s utility
as an aggregated blockchain network by providing security and
“unifying liquidity and shared state across multiple chains.” Per
the post, some MATIC holders may have to take certain actions for
the migration depending on where they hold their tokens. POL will
be automatically upgraded for MATIC holders on Polygon PoS and no
action is required. Meanwhile, action is required for users on
Ethereum, Polygon zkEVM, or centralized exchanges (CEXes). These
holders will have to upgrade to POL through a token migration
contract. MATIC Falls 7%, Is $0.4 Or $1 Next? Following the news,
Polygon’s native token saw a price decline of around 7%. The token,
trading at $0.54 at the time of the announcement, fell to the $0.52
price range in the next 2 hours. MATIC’s price dropped to the $0.51
support zone, currently hovering between the $0.513 and $0.518
range. This performance represents a 4% retrace in the monthly
chart. However, the token exhibits green numbers in the weekly and
biweekly timeframes, with a 2% increase. Additionally, MATIC
registers a 34% increase in its daily activity, with a daily
trading volume of $374.7 million. Some market watchers have
contradictory opinions on Polygon’s native token performance.
Crypto analyst The Cryptonomist shared a bearish forecast for MATIC
in an X post. Per the post, the analyst highlighted that MATIC had
a “beautiful breakdown” from a “large rising wedge with higher TF
resistance.” This suggested to the analyst that the token will
continue descending, even if a retest is possible. As a result, she
suggested a price target of $0.4. Meanwhile, Zayk Charts stated
that MATIC was moving inside a falling wedge pattern in the macro
chart. The analyst considered that a breakout out of the bullish
pattern could fuel a rally toward the $1 price range. Related
Reading: FET Surges 12% Ahead Of ASI Token Merger Phase 2, Can It
Hit $5? Crypto analyst Alex Clay considers MATIC to be at a
“generational bottom.” Clay highlighted that the token saw a
20,000% return run after its previous 630-day-long channel
accumulation. The analyst believes that MATIC’s current
1218-day-long accumulation inside a Symmetrical triangle could lead
to double-digit price targets. His prediction includes hitting the
$4.5, $7.1, and $9.75 resistance levels before reaching a
double-digit target. Featured Image from Unsplash.com, Chart from
TradingView.com
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