Polygon (MATIC) is currently experiencing some turbulence in its technical environment, with a 4.2% drop to $0.557 on Friday. The leading Ethereum Layer 2 scaling protocol seems to have disregarded the sentiment surrounding the development of Polygon 2.0, a major upgrade. While there is potential for a long-term rebound, short-term analysis suggests that there may be another drop to lower support levels at around $0.54 and $0.493.
Polygon developers have shared an important update on the impending launch of Polygon 2.0 on X (formerly Twitter). They announced that POL contracts will soon go live on the Goerli testnet, marking a significant step towards bringing Polygon 2.0 to life. This decision was made based on feedback from the community during the PIP governance process.
The development team has also set the total supply of POL tokens, which will power the ecosystem on the new protocol. This step is crucial for the implementation of the EIP-1559 burn system in Phase 0 of Polygon 2.0. In the coming weeks, Polygon developers plan to introduce a new proposed governance structure for Polygon 2.0, which will include an Ecosystem Council composed of industry leaders and experts.
Despite the current bearish outlook for MATIC price, there is still hope for a recovery based on the falling wedge pattern observed on the daily chart. A breakout above the falling trendline accompanied by increased trading volume could lead to a significant price increase. Traders are advised to consider placing buy orders above the wedge pattern with a target price of $1.
In conclusion, while Polygon faces some short-term challenges, there are promising developments on the horizon with Polygon 2.0 and potential price recovery for MATIC.
Hot Take: Is Polygon (MATIC) Poised for a Comeback?
Polygon (MATIC) has been facing some setbacks in its technical environment, leading to a drop in price. However, with the upcoming launch of Polygon 2.0 and the implementation of new governance structures, there is hope for a rebound. The falling wedge pattern observed on the daily chart suggests a potential breakout and increase in trading volume, which could drive the price up. Traders should keep an eye on these developments and consider placing buy orders above the wedge pattern to take advantage of a potential price surge. It’s an exciting time for Polygon as it strives to build the value layer of the internet.
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