- POL tokens will replace MATIC for gas and staking on Polygon.
- MATIC shows recovery signs; surpassing $0.45 could lead to further gains.
Polygon (MATIC), the Layer 2 scaling solution for Ethereum, is set for a significant transformation as it transitions from MATIC to the new POL tokens. Scheduled to occur within the next month, this change will see POL become the primary gas and staking token within Polygon’s Proof-of-Stake (PoS) network.
The transition, expected to unfold in multiple stages, is part of Polygon’s broader efforts to enhance network functionality through its innovative AggLayer project. This evolution is anticipated to improve the network’s efficiency and marks a pivotal moment for Polygon’s blockchain ecosystem.
Meanwhile, in the lead-up to this transition, MATIC’s price has shown signs of recovery. It has rebounded to a critical support level. As of the latest data, it is priced at $0.4182, reflecting a 0.69% increase over the past 24 hours. This uptick comes amid heightened market activity, with trading volume surging 36% to approximately $159 million, indicating growing investor interest.
MATIC Bull Run Ahead?
Technical indicators suggest a possible continuation of this upward trend. The Moving Average Convergence Divergence (MACD) shows a slight bullish crossover, with the signal line just above the zero line. It hints at further potential gains. If MATIC surpasses the $0.45 resistance level, it could rally toward $0.5, with the possibility of retesting the $0.55 mark.
However, the market remains cautious. A downturn in broader market conditions could push MATIC back to the $0.41 support level, with a further decline potentially leading to a bearish shift around $0.4. Additionally, data from Coinglass indicates a 3.90% rise in Polygon’s open interest, now at $117.01 million. This increase in open interest may influence MATIC’s price, as the rising interest in MATIC options suggests growing trader confidence.
As the transition to POL tokens approaches, we will closely monitor the market’s response, which could have potential implications for MATIC’s future price trajectory
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