- Currently, MATIC’s price is bouncing off a crucial support level, and there has been an indication of a relief bounce that the POL rebrand announcement may support.
- Polygon’s transition from MATIC to POL tokens will eventually ease the integration of POL into the network’s primary operations and possibly improve scalability and its TPS.
- Higher trading volume and semi-ascending trend patterns also make investors bullish on MATIC.
Polygon (MATIC), which is an Ethereum Layer 2 scaling solution, is currently transitioning, which could have some impact on the native token known as MATIC. The company has revealed plans to rebrand, including changing from MATIC to POL tokens, which will be implemented starting September 4.
This transition is expected to improve the performance and usability of the network, and investors/traders may interpret this change and react accordingly in the MATIC market.While rebranding and the transition to POL tokens may seem like a change of masks for Polygon, it is a significant restructuring decision made to enhance the functioning of the network.
Thus, POL will supplant MATIC as the principal gas and staking asset for Polygon’s Proof-of-Stake (PoS) blockchain. The transition will be a gradual process that will start with POL also providing services that MATIC performs in the present. In the long run, POL will be further integrated into Polygon’s AggLayer project to enhance its network’s scalability and TPS.
Potential Impact on MATIC Price and Market Sentiment
This transition is still ongoing, and market participants are observing the effect on MATIC’s price during this change. At the moment, MATIC is in a critical support area, and its technical indicators have displayed a reversal pattern likely to benefit from the rebrand.
The token is trading at $0.4256. It has seen a 2.62% increase in the last 24 hours, with trading volume up by 48.50% to approximately $181million. These figures suggest heightened interest from investors who may be anticipating further price gains as the rebrand progresses.
In addition to identifying key levels, the analysis also looks at the technical means to assess the possibility of a MATIC price change. They include the Moving Average Convergence Divergence (MACD) which is above the signal line presenting a very slight bullish crossover.
Source:Trading view
Analysts are watching key resistance levels, particularly at $0.45 and $0.5. Surpassing these could pave the way for MATIC to retest the $0.55 level, signaling a stronger bullish momentum. Despite the positive signs, there are risks associated with this transition. Should market conditions deteriorate or if the rebrand fails to meet expectations, MATIC’s price could face downward pressure.
The post Polygon’s Major Rebrand: How the Shift to POL Could Impact MATIC’s Price appeared first on Crypto News Land.
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