Polygon Announces Token Upgrade Amid SEC’s Lawsuit FUD, MATIC Price Battles Bears

Key Takeaways:

• Polygon announced a major ecosystem update days after the SEC named it unregistered security.
• MATIC price struggled to continue its minor rally.

PATNA (CoinChapter.com) — Polygon maintained its promise of a major announcement in the week beginning July 12, just days after the SEC labeled MATIC as an unregistered security in its lawsuit against Binance and Coinbase.

In an announcement, Polygon claimed the upcoming update would help build the ‘Value layer‘ of the internet. Polygon developers explained that the value layer allowed users to create, exchange, and program value, similar to how the internet allows people to manipulate information.

Developers stated that the upcoming update, dubbed ‘Polygon 2.0,’ includes a set of upgrades that would “reimagine” the platform’s protocol architecture, tokenomics, and governance.

Polygon 2.0 will be a network of zero-knowledge-proof-based L2 chains. A cross-chain coordination protocol would help unify the operations of the zk-powered chains.

Furthermore, the developers highlighted the upgrade was a culmination of more than a year of collaboration between “Polygon Labs, developers, researchers, applications, node operators, etc.”

According to the roadmap the team shared, developers would share details of the Polygon PoS in the week of 19 June. Moreover, details about the architecture and stack of Polygon 2.0 will arrive in the week beginning June 26.

Also Read: SEC vs Ripple: All Eyes On XRP Price Rally As Hinman Documents Become Public

With the SEC lawsuit ongoing, Polygon announcing the launch suggests the team is confident of surviving the SEC’s onslaught.

MATIC Price Buckles Under Bearish Pressure

Meanwhile, MATIC price started a minor recovery rally, rising nearly 15% from June 11’s low of $0.592. However, the bearish pressure against the token remained high, evident by the tall upper wicks on MATIC’s daily candles.

MATIC price started June 13 on a positive note, spiking over 8% to reach a daily high near $0.68. But bearish pressure against the Polygon token resulted in MATIC price paring the day’s gains.

If the sell-off continues, the MATIC token price might drop to its support level near $0.6.

Furthermore, breaching the immediate support level could result in MATIC price falling to test the support level near $0.56 before recovering.

Conversely, news of the upcoming Polygon upgrades could attract buyers to the market. Additionally, the oversold RSI, clocking at 24.3 on the daily chart, could add a bullish cue for investors who rely on technical indicators.

Therefore, MATIC price could witness a rise to the immediate resistance level near $0.67. Moreover, breaking and consolidating above immediate resistance might help MATIC price target resistance near $0.74 before corrections pare gains.