Polygon (MATIC) Price Reclaims $0.53 as POL Token Migration Roadmap is Released
The price of Polygon’s native cryptocurrency, MATIC, has risen to $0.53 following the release of the long-awaited POL token migration roadmap on September 14. This news has boosted the confidence of existing MATIC holders and spot market traders, resulting in a 10% price increase over the past week.
However, Futures market traders and new market entrants are feeling hesitant due to the uncertainty surrounding the token migration process. Despite the price recovery, open interest in MATIC derivatives has continued to decline, indicating that investors are shifting their capital away from these markets.
Reduced Interest and Participation in the MATIC Market
The decrease in open interest could also lead to decreased demand in the spot markets. Additionally, new users have been cautious about entering the Polygon network since the migration roadmap was announced. The number of new wallet addresses created on the network has significantly declined.
MATIC Price Prediction: $0.50 Support at Risk
Based on these trends, it is likely that MATIC’s price will consolidate around $0.50 – $0.55 instead of experiencing a major breakout. The purchase price distribution data shows that if user acquisition continues to decline, there is a possibility that the price could drop towards $0.50.
However, if clarity is provided regarding the token migration and more users and traders come onboard, there is potential for a rally towards $0.70. Resistance may be encountered at $0.56, but if it is overcome, MATIC could reclaim $0.70.
Hot Take: MATIC Faces Hesitation Amidst Token Migration Uncertainty
The release of the POL token migration roadmap has sparked a rally in MATIC’s price, but uncertainty surrounding the migration process has caused hesitation among Futures market traders and new market entrants. Open interest in MATIC derivatives has declined, indicating a shift in investor capital. Additionally, the number of new wallet addresses created on the Polygon network has significantly decreased since the migration roadmap was announced. These factors suggest that MATIC may struggle to sustain its current price uptrend. However, if clarity is provided and more users and traders join the network, there is potential for a rally towards $0.70.