Polygon [POL] had a challenging September, deviating from the optimistic trend of the crypto market in general, despite some initial optimism from the Token conversion in the ecosystem.

The Layer-2 scaling network activated an upgrade allowing token migration from MATIC to POL on September 4, increasing utility and flexibility.

Despite the initial hype around this breakout, POL reversed and gave up gains in the final week of the month.

Source: TradingView

Data from TradingView shows the token price fell from a peak of $0.446 on September 28 to $0.398 by the end of the month.

The POL token (formerly MATIC) is trading at $0.38 at press time, down 5.6% on the day and 70% below its all-time high on March 13.

Holder's performance in Q4

The lackluster price performance in September contrasts sharply with Bitcoin and several other altcoins, whose steady gains during the month are generally known for their negative returns.

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Data from Coinglass shows that Bitcoin price increased by 7.29% in September while Ether price increased by 3.56% in the same period.

POL’s slumping market is even more worrying as 95% of token holders are suffering unrealized losses, according to data from IntoTheBlock. This includes 81% of holders who held the token for a year, during which time POL lost 37% of its value.

Ecosystem Milestones

Last week, Polygon Labs activated the Ahmedabad hardfork on the Proof-of-Stake (PoS) mainnet after two weeks of testing on the Amoy testnet.

This upgrade, which marks a major step in Polygon's roadmap, includes three Polygon Improvement Proposals (PIPs), including PIP-30, PIP-36, and PIP-45.

These proposals introduce multiple optimizations to the PoS Chain, primarily focused on improving the experience for users and decentralized application (dApp) developers.

PIP-30 increases the maximum code size from 24KB to 32KB, allowing dApp builders to implement complex contracts and logic. PIP-36 solves the stuck bridge transaction problem by facilitating replay of failed state synchronizations.

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POL/USD Technical Analysis

On the 4-hour chart of POL/USDT, the Relative Strength Index (RSI) has edged up slightly from the oversold zone it touched on Monday before sliding back down. The RSI stands at 30.61 at the time of writing.

Source: TradingView

The 200-day SMA fell below the 100-day SMA on September 28, after falling below the 50-day SMA a day earlier.

These crossovers show weakening strength and suggest that POL price will continue to be under downward pressure in the coming period.

In the previous instance of this crossover structure, the rising 50-day SMA crossed above the flat 200-day SMA on August 24. The 100-day SMA, also rising at the time, crossed above the 200-day SMA three days later on August 27.

This intersection signaled a decline in the price of POL as the Token price fell from $0.576 on August 24 to $0.415 on August 30.

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