- MATIC surged 27% ahead of Polygon’s September POL token migration.
- Significant large transaction volume suggests growing institutional interest in MATIC.
Polygon’s native token, MATIC, has experienced a robust 27% surge over the past week, hitting a one-month high of $0.5399. This marks a sharp recovery from its recent low of $0.3342, where MATIC had been entrenched in a bearish trend for over a month.
The rally coincides with anticipation surrounding a significant network upgrade. On September 4, 2024, Polygon will migrate its gas token from MATIC to POL. Post-upgrade, POL will become the native gas token for Polygon’s Proof-of-Stake (PoS) network, facilitating transactions and securing the network through validator incentives.
MATIC holders need not take any action, as transactions will automatically transition to using POL as the gas token. Validators will also begin receiving rewards in POL for network security and transaction processing.
Meanwhile, according to data from IntoTheBlock, MATIC’s large transaction volume skyrocketed by 16,263.06% in the past day. Large transactions, defined as those exceeding $100,000, serve as an indicator of whale and institutional activity. The dramatic increase in large transaction volume suggests heightened interest from major market players.
In parallel, MATIC’s trading volume surged by 205%, reaching $945 million. Open interest in MATIC contracts also saw a substantial rise, increasing by 40% to $192.97 million. Analysts suggest that this spike in trading activity reflects growing investor optimism and bullish sentiment towards it.
What is Ahead For MATIC?
Despite this positive momentum, the outlook for MATIC remains uncertain. On the daily chart, it remains in a bullish trend, with the 9-day Exponential Moving Average (EMA) at $0.4629.
If the bullish momentum continues, it could face resistance at $0.5766 and $0.6322. However, if bearish sentiment prevails, the price could retreat to $0.3979, with additional support at $0.3827.
Despite the current bullish momentum, market volatility remains high, and investors should closely monitor key support and resistance levels for potential shifts.
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