TLDR:
MATIC price has surged 12-20% in the past 24-48 hours
Analysts predict potential for 450% rally, but RSI indicates overbought conditions
Open Interest and volume have increased significantly, showing growing investor interest
MATIC to transition to POL token on September 4th in 1:1 exchange
Price has reached 60-day high amid increased whale accumulation
Polygon’s MATIC token has seen a price surge over the past 24-48 hours, climbing 12-20% to reach a 60-day high of $0.52. This rally comes as the Polygon network prepares for a major transition, with MATIC set to be replaced by a new POL token on September 4th.
SAVE THE DATE: MATIC → POL
After community consensus, the long-awaited upgrade is set for September 4th
• Initial phase: POL replaces MATIC as the native gas and staking token for Polygon PoS
• Subsequent phases: POL will serve a crucial role in the AggLayer
— Polygon Foundation (@0xPolygonFdn) July 18, 2024
The recent price action has caught the attention of analysts, with some predicting potential gains of up to 450% in the coming months. Crypto analyst Javon Marks pointed to bullish chart patterns, including a broadening wedge formation, as evidence for further upside.
$MATIC (Polygon) starting to deliver with MAJOR STRENGTH here and may be right on time!
The run towards new All Time Highs in a near +450% climb from here can be commencing… https://t.co/i3HVe2Z7NL pic.twitter.com/jMQC22VBnP
However, short-term risks remain. MATIC’s Relative Strength Index (RSI) currently sits at 72, indicating overbought conditions that could lead to a pullback. Key resistance levels at $0.51 and $0.55 may also prove challenging to overcome.
Despite these potential headwinds, on-chain metrics paint a bullish picture. Open Interest for MATIC derivatives has surged nearly 40% in the past day, reaching $209 million. This suggests growing investor participation and interest in the token.
Whale activity has also picked up, with large holder netflow increasing 43% over the past week. This accumulation by major players often precedes sustained price rallies.
The upcoming token migration from MATIC to POL, set for September 4th, appears to be a key driver of recent price action. The new POL token will serve as the gas and staking token for the Polygon ecosystem, with a 1:1 exchange planned for existing MATIC holders.
While the long-term outlook remains positive, traders should be cautious in the near term. The Average Directional Index (ADX) of 48.17 confirms a strong uptrend, but overbought conditions could lead to volatility. Potential targets for bulls include $0.55, while a pullback could see support around $0.33.
The post Polygon (MATIC) Price Surges Ahead of Token Migration: Analysts Eye Further 450% Gains appeared first on Blockonomi.
