MATIC’s price recently dipped to $0.62, but it’s part of a broader market correction. An imminent major upgrade, Polygon 2.0, and the launch of POL smart contracts on the Ethereum mainnet could be game-changers. MATIC remains strong, supported by technical indicators and positive market sentiment. The potential for MATIC’s price to reach $2.92 is on the horizon.
Polygon’s MATIC token is poised for a significant upswing in the wake of the debut of Polygon’s POL smart contracts on the Ethereum mainnet, as the crypto market remains in a state of flux. Last week, the leading Ethereum layer 2 scaling protocol managed to break free from a falling wedge pattern with a crucial support level at $0.5.
The surge in MATIC’s price has brought with it an increase in trading volume, which now stands at an impressive $475 million, and a market capitalization of $5.8 billion, securing its position as the 14th largest cryptocurrency by market cap, trailing Chainlink’s $6.2 billion.
MATIC Sees A Minor Dip Amidst Wider Market Correction
Over the last 24 hours, MATIC’s price has seen a slight dip of 4%, resting at $0.62 at the time of writing. This pullback is not exclusive to MATIC but has affected Bitcoin and most other altcoins as well. These minor corrections are a natural part of market dynamics and often serve to build up liquidity for further upward movement.
However, a MATIC sell-off is unlikely to materialize, especially considering the bullish technical outlook on the daily chart. The entire crypto market is buoyed by optimism regarding the potential approval of a Bitcoin spot exchange-traded fund (ETF) in the coming months.
What sets MATIC apart is its imminent major upgrade, Polygon 2.0. According to a recent press release, Polygon Labs announced the launch of the POL token upgrade on the Ethereum mainnet as part of the roadmap leading to the full release of Polygon 2.0. This upgrade aims to usher in a new era for scaling Ethereum, creating a “Value Layer of the Internet.”
The team leading this project expressed that “POL represents a cutting-edge token capable of energizing an extensive network of ZK-based L2 chains. This is achieved through an inherent re-staking system that enables POL holders to validate multiple chains and undertake various functions within each of these chains, effectively transforming POL into an exceptionally productive token.”
The launch of Polygon POL will gradually replace MATIC as the native token powering this evolving ecosystem. The development of the Value Layer of the Internet has been ongoing for months, and the deployment of POL Smart contracts on the Ethereum mainnet is a significant milestone, following extensive community consultation and a successful testnet launch.
MATIC Price Forecast As Polygon’s Upward Momentum Pauses
MATIC’s price is currently maintaining support above two critical levels provided by the 21-day Exponential Moving Average (EMA) at $0.562 and the 100-day EMA at $0.599. As long as the bulls can uphold these support levels, the current uptrend is likely to continue, with predictions for a significant move above $1.
The Relative Strength Index (RSI) indicates that buyers currently have the upper hand, as its strength registers at 70 on the daily chart. This suggests a positive sentiment in the market, favoring further price growth.
Analysts are keeping a close eye on the $0.65 price point, which presents a significant hurdle for MATIC. Overcoming this seller congestion will be pivotal, as the next challenge is the 200-day EMA at $0.7.
With the impending launch of Polygon 2.0, sentiment surrounding MATIC is expected to continue improving in the coming weeks. This may lead to increased demand for MATIC, particularly from investors eyeing the POL airdrop. With these factors in mind, the prediction for MATIC’s price rally exceeding $1 appears conservative, with the potential for gains to soar to an all-time high of $2.92.