• MATIC price dives 70% in five months.

  • Massive MATIC transfer fuels selling pressure.

  • Polygon’s POL upgrade offers a potential lifeline.

Polygon’s native token, MATIC, has taken a steep dive, plummeting 70% in just five months. The recent crypto market volatility, coupled with a massive 30 million MATIC transfer from Binance to an unknown wallet, has only added to the downward pressure. While technical analysis sees a possible short-term rebound, the long-term outlook remains uncertain.

Currently, MATIC’s price is hovering around $0.43, close to the support level of $0.396. Market experts are watching the range between $0.396 and $0.356 closely as a critical support zone. If the price falls to this level, it could find a footing and potentially bounce back. A short-term dip might present a buying opportunity, but a sustained upward trend isn’t guaranteed until the price breaks through key resistance levels.

“The price could still easily form one more low, but pay attention to the micro support area between $0.396 and $0.356. I do not see this as a long-trade setup as long as the price has not even broken resistance or broken above the trend line, but there could be a reaction once the price reaches support.”

Source: More Crypto Online

Amidst this unpredictability, a glimmer of hope shines through Polygon’s upcoming upgrade. The PoS network is set to transition from MATIC to POL on September 4th. POL will replace MATIC to assume the role of the primary token for transaction fees and staking. This major change is part of Polygon’s bigger plan to become an aggregated blockchain network, with POL playing a key role in the future ecosystem.

The new token is expected to support various functions within the Polygon network, including block generation and participation in data availability committees. While the full impact of the POL upgrade on MATIC’s price remains to be seen, it represents a strategic shift for Polygon as it seeks to solidify its position in the competitive blockchain landscape.

Whether POL can turn the tide for MATIC and push Polygon to new heights is still up in the air. Investors will be watching closely in the months ahead as the network undergoes this major transformation.

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