Polygon (MATIC) Price Prediction 2022: Can MATIC Hit $1 After the Recent Market Rebound?

Polygon price has initiated a major upgrade by introducing the POL token on its mainnet, supplanting the previously used $MATIC.

Polygon price has seen a slight uptick in the past 24 hours, with the MATIC token price showing a minimal increase. However, despite attempts at a price recovery, the token has largely trended downwards over the last week.

Polygon price today is up by 1.14%, bringing the token’s price to $0.374 at the time of writing. This comes as the layer 2 blockchain trades close to a crucial support level at $0.37.

MATIC price performed a 47.24% price surge in the past month, asịp counter rose from a low of $0.25 on August 7 to hit highs of $0.37 on September 7. From this high, the token price then corrected and dropped to a low of $0.36 earlier today.

However,ịp price recovered from this support and began to trade upwards once more. This saw the MATIC price briefly spiking up to highs of $0.3786 before pulling back slightly.

Polygon price performed a 47.24% price surge in the past month. Source: TradingView

Daily technical indicators for MATIC Network present a mixed signal to traders and investors. The Relative Strength Index (RSI) is neutral at 41.85, suggesting that MATIC is neither overbought nor oversold.

The Moving Average Convergence Divergence (MACD) indicates a bearish trend. The histogram’s movement is below the zero line, and the MACD line trails below the signal line.

RSI for MATIC Network is neutral, while MACD is bearish. Source: TradingView

According to data from Santiment, the MVRV (Market Value to Realized Value) Ratio for MATIC has seen significant flunctuations in the past six months.

Of particular note is a sharp spike in early May, where the MVRV ratio shot up to over 95%. This suggests that most holders would have made a profit if they had sold their MATIC at that time.

Following this peak, the ratio has sharply declined, reaching a low of around -70.90% as of September 7. This indicates that most holders would incur losses if they sold their holdings now.

The dramatic change in the MVRV ratio may be attributed to shifting investor sentiment and market conditions.

MVRV ratio for MATIC has seen flunctuations, with most holders now in at a loss. Source: Santiment

Polygon Price Could Hit $1

Polygon price is seen performing a notable ascent if it manages to clear the resistance at $0.40. This breakout could pave the way for a target of $0.50, which could further propel the cryptocurrency to test the $0.55 level.

The post-POL Migration phase holds promise. It could significantly bolster Polygon’s value, driving it up by 168% to $1.

Frequently Asked Questions (FAQs)

1. Why did Polygon decide to introduce the POL token?

The POL token was introduced by Polygon as part of an upgrade to its mainnet, which saw the native token shift from MATIC to POL. This change occurred on September 4 and was undertaken as a measure to enhance the network’s scalability, security, and modularity.

Moreover, POL is designed to facilitate staking across multiple chains, a key aspect of the Polygon 2.0 strategy.

2. How does the POL token affect existing MATIC holders?

With the introduction of the POL token, all existing MATIC (both in circulation and locked up) were automatically converted into POL at a 1:1 ratio. This means that the total supply of POL is now 10 billion tokens.

Furthermore, the roles and functionalities of the token, including its use in staking and network fees, remain unchanged.

3. What are the potential benefits of the MATIC to POL migration?

The MATIC to POL migration is expected to bring several benefits, including improved performance, lower transaction costs, and enhanced security.

Additionally, this move is part of a broader strategy to integrate Polygon into multiple layer 1 blockchains, enabling cross-chain staking and governance.

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