Matic price is likely to surge in the coming weeks due to two major reasons: the circulating supply of Polygon's token is now at 100%, and it is an Ethereum Layer 2 solution, contributing to the positive narrative unfolding for all Ethereum-related entities.
Polygon Poised to Take Center Stage
Polygon's fundamentals seem strong for the following reasons:
Zero Inflation: Polygon's staking contract unlocked the last 273 million MATIC last week, meaning there is no more inflation.
Narrative: Additionally, the Uniswap fee switch announcement has boosted Ethereum ecosystem tokens, which are seeing massive rallies. With Polygon's main selling point being its Layer 2 scaling solution for Ethereum, this bodes well for MATIC.
While these two reasons are the primary drivers for a potential MATIC price surge, four other factors add to the bullish case:
Reduced Selling Pressure: The now-defunct Celsius Network sold its last $50 million worth of MATIC tokens in January.
Rebranding: Polygon's MATIC token rebranding to POL is also planned for Q2 2024 under the Polygon 2.0 initiative. This development could improve Polygon's social scores and make them more meme-able.
ZK Narrative: Moreover, the Zero-Knowledge narrative that started in Q4 2023 is likely to make a comeback in 2024 as Polygon upgrades its Proof-of-Stake (PoS) chain to zkEVM (Ethereum Virtual Machine).
Airdrop: Finally, POL stakers could potentially be eligible for an airdrop, similar to what happened with the recently launched Celestia's TIA token.
MATIC Price Primed for a Breakout
MATIC price recently reclaimed the midpoint of the $0.315-$1.56 range at $0.941 and flipped it into support. This development came as the weekly Relative Strength Index (RSI) decisively consolidated above the neutral level. Considering that the Awesome Oscillator (AO) is also comfortably above zero, it indicates rising bullish momentum from a higher timeframe perspective.
This week's candle close will be crucial for MATIC price. If the altcoin manages to produce a decisive close above $1, it will signal the start of a major bull run.