Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Polygon’s MATIC to POL Migration Completed, But Price Remains Weak

Published 06/09/2024, 05:50 am
Updated 06/09/2024, 09:00 am
Polygon’s MATIC to POL Migration Completed, But Price Remains Weak
MATIC/USD
-

The News Crypto -

  • Polygon’s MATIC to POL migration completed, but user activity and price remain weak.
  • POL is down in 24 hours despite 925% volume increase.
  • Technical indicators suggest potential for further decline, with $0.35 as bearish target and $0.55 as bullish target.

Polygon’s recent migration from its native token MATIC to POL, completed on September 4, has failed to spark the positive market response typically associated with such upgrades.

Instead, the network faces a series of challenges, including declining user activity and large holders offloading their tokens, which continue to exert downward pressure on the newly minted POL’s price.

The 1:1 migration of MATIC to POL, now serving as Polygon’s gas and staking token, has been met with a muted market reaction. POL currently trades at $0.36, recording a 4% decline over the past 24 hours.

Paradoxically, this price drop has been accompanied by a staggering 925% surge in trading volume, a phenomenon often indicative of panic selling and heightened market uncertainty.

Source: Santiment

Polygon market faces selling pressure

This disconnect between price and volume suggests a market dominated by selling pressure, potentially driven by fear and uncertainty surrounding the token upgrade or broader market trends.

The situation has forced many POL holders to liquidate their positions at a loss, as evidenced by the token’s ratio of daily transaction volume in profit to loss. Currently standing at 0.51, this metric indicates that for every profitable transaction, 1.96 transactions are resulting in losses.

Technical analysis of POL’s 12-hour chart paints a concerning picture for short-term price prospects. The Moving Average Convergence/Divergence (MACD) indicator shows the MACD line resting below both its signal and zero lines, a configuration typically interpreted as a strong bearish signal. This setup often prompts traders to exit long positions and consider short entries.

However, amidst these bearish signals, a glimmer of hope emerges from POL’s Relative Strength Index (RSI). Currently registering a value of 28.67, the RSI suggests that POL may be entering oversold territory.

This content was originally published on The News Crypto

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.