Polygon Migrates to POL Token, But MATIC Price Fails to React

Amid a significant network upgrade, the Polygon ecosystem has now migrated to the POL token as its primary token over its mainnet.

Polygon has now fully migrated to the POL token as its primary token on the mainnet, following a significant network upgrade.

The migration, which was first announced by Polygon Labs on July 18, went live on September 4.

As part of the upgrade, the ecosystem will now use the hyperproductive POL token as the native gas and staking token. It will also be used for validator rewards and governance fees.

However, there is no immediate pressure for MATIC investors to migrate to the new gas token.

Binance announced its support for the migration last week, along with Kucoin and Coinbase.

MATIC coin price in the crypto market

Despite the massive upgrade, there was no boost for the MATIC coin price in the crypto market.

With a market cap of $1.73 billion, Polygon is ranked 43rd in the crypto market. The MATIC token currently trades at $0.3702, showing a 24-hour pullback of 1.30%.

Over the last week, the altcoin has registered a 12.50% drop.

In the daily chart, the MATIC price action showcases a long-coming falling channel pattern with a failed bullish breakout.

The breakout rally peaked at $0.56 but quickly took a V-top reversal. The bearish cycle accounts for a 35% drop in the past 13 days with only a single bullish candle and is currently testing the $0.37 support.

Technical Indicators:

RSI: Despite a new lower-low formation, the daily RSI line reveals a bullish divergence at play. Meanwhile,

EMA: The 50- and 200-day EMA maintain a bearish alignment following the death cross in April this year. Since the death cross, the MATIC price has failed to test the 200-day EMA.

Based on the price action levels, the next support level stands at $0.33 and $0.30, along with the declining support trendline.

On the positive side, a recovery run with the broader market bounce back could challenge the $0.40 along with the overhead resistance trendline.

This breakout rally will again challenge the 50-day EMA, acting as the dynamic resistance at $0.4617.