POL Contracts Live On Goerli Testnet

POL Contracts Live On Goerli Testnet

Polygon (MATIC) is wobbling in a murky technical environment, down 4.2% to $0.557 on Friday. The leading Ethereum Layer 2 scaling protocol has ignored sentiments around the development of a major upgrade, Polygon 2.0.

From a long-term perspective, a rebound is brewing, however, short-term analysis reveals the possibility of another sweep at lower support areas – tentatively $0.54 and $0.493, respectively.

Polygon 2.0 Update – MATIC Price Drops

Polygon developers published another significant update on X (formerly Twitter) regarding the impending launch of the protocol’s upgrade, Polygon 2.0. According to the announcement, POL contracts are set to go live on the Goerli testnet, marking “a major step towards bringing Polygon 2.0 to life.”

After reviewing feedback from the community, developers set the total supply of POL, the token expected to power the ecosystem on the new protocol. The development team said that this step is significant to the “EIP-1559 burn system needed for Phase 0 of Polygon 2.0.”

“In the coming weeks, the first steps of the new proposed governance for Polygon 2.0 will be shared, the core of which will be a new Ecosystem Council composed of thought leaders and technology experts; pillars of the Web3 community with substantial security credentials,” Polygon developers said via X.

The community has been requested to stay tuned for more updates, especially on the POL testnet as the development team strives to “build the value layer of the internet.”

On the other hand, MATIC price is holding slightly above support provided by the 21-day Exponential Moving Average (EMA) (red) after bulls were rejected from resistance highlighted by the 23.6% Fibonacci retracement level which coincidently forms a confluence with the falling trendline.

matic price prediction chart
MATIC/USD daily chart | Tradingview

The Relative Strength Index (RSI) reinforces the bearish outlook as the uptrend weakens paving the way for a pullback. Support at the 21-week EMA must hold, otherwise, Polygon might drop to $0.493 in search of support.

Despite the glaring bearish outlook, there is still hope for a Polygon price recovery based on the falling wedge pattern on the same daily chart. As a reversal pattern, the wedge forms toward the end of a downtrend.

A breakout would be expected if MATIC price obliterates resistance at the falling trendline – backed by a significant increase in trading volume. It is recommended to place buy orders above the wedge pattern amid expectations of a run up to $1.

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John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience updated with the latest news in the crypto sphere, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.


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