On Thursday, the Polygon Foundation announced the date for its upcoming MATIC to POL upgrade after reaching a community consensus. The long-awaited token migration will occur in lower than two months and goals to kickstart Polygon’s native token expansion. MATIC saw a 7% drop following the news.
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Save The Date: Polygon Token Upgrade Coming Soon
The Layer-2 scaling solution for Ethereum, Polygon, revealed the highly anticipated date for its native token upgrade. Set for September 4, the initial phase will begin with the token migration from MATIC to POL.
Polygon Foundation pronounces token upgrade date. Source: Polygon Foundation on X
Per the announcement, POL will initially replace MATIC “because the native gas and staking token for Polygon PoS.” The upgrade went live to tell the tale the testnet on July 17 to “function a dress rehearsal” to discover and fix potential issues before the mainnet migration.
Upgrading Polygon PoS from MATIC to POL is a major undertaking that requires the best security possible, including robust testing. (…) A testnet migration allows users, developers, and infrastructure providers to familiarize themselves with the processes of upgrading, ensuring technical validation and minimizing disruptions through the mainnet upgrade.
Through the subsequent phases, the POL upgrade goals to expand Polygon’s utility as an aggregated blockchain network by providing security and “unifying liquidity and shared state across multiple chains.”
Per the post, some MATIC holders can have to take certain actions for the migration depending on where they hold their tokens. POL might be mechanically upgraded for MATIC holders on Polygon PoS and no motion is required.
Meanwhile, motion is required for users on Ethereum, Polygon zkEVM, or centralized exchanges (CEXes). These holders could have to upgrade to POL through a token migration contract.
MATIC’s performance within the weekly chart. Source: MATICUSDT on TradingView
MATIC Falls 7%, Is $0.4 Or $1 Next?
Following the news, Polygon’s native token saw a price decline of around 7%. The token, trading at $0.54 on the time of the announcement, fell to the $0.52 price range in the following 2 hours.
MATIC’s price dropped to the $0.51 support zone, currently hovering between the $0.513 and $0.518 range. This performance represents a 4% retrace within the monthly chart. Nevertheless, the token exhibits green numbers within the weekly and biweekly timeframes, with a 2% increase. Moreover, MATIC registers a 34% increase in its each day activity, with a each day trading volume of $374.7 million.
Some market watchers have contradictory opinions on Polygon’s native token performance. Crypto analyst The Cryptonomist shared a bearish forecast for MATIC in an X post.
Per the post, the analyst highlighted that MATIC had a “beautiful breakdown” from a “large rising wedge with higher TF resistance.” This suggested to the analyst that the token will proceed descending, even when a retest is feasible. Consequently, she suggested a price goal of $0.4.
Meanwhile, Zayk Charts stated that MATIC was moving inside a falling wedge pattern within the macro chart. The analyst considered that a breakout out of the bullish pattern could fuel a rally toward the $1 price range.
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Crypto analyst Alex Clay considers MATIC to be at a “generational bottom.” Clay highlighted that the token saw a 20,000% return run after its previous 630-day-long channel accumulation.
MATIC accumulates inside a symmetrical triangle. Source: Alex Clay on X
The analyst believes that MATIC’s current 1218-day-long accumulation inside a Symmetrical triangle could lead on to double-digit price targets. His prediction includes hitting the $4.5, $7.1, and $9.75 resistance levels before reaching a double-digit goal.
Featured Image from Unsplash.com, Chart from TradingView.com