Polygon’s “Massive Technical Upgrade” Does Little in Reviving MATIC Price Bulls

Key Takeaways:

• Polygon announced a new technical update called POL.
• However, MATIC Price refused to react positively to the news.
• The Polygon token price has formed a bearish technical pattern.

NEW DELHI (CoinChapter.com) — Sandeep Nailwal, founder of the Ethereum scaling solution Polygon, announced a “massive technical upgrade” for the platform’s native token, MATIC. The platform plans to introduce a new token to replace the existing MATIC token.

The proposed token, POL, would allow users the benefits of multi-chain staking without the risks associated with restaking. The new token would also align with the platform’s expansion plans, which would help the Polygon ecosystem expand into an ecosystem of Layer-2 chains.

Furthermore, transforming from a single chain to an L2 ecosystem would help Polygon users interoperate and share liquidity.

POL’s white paper claimed that the token would become ‘the main driver of the vision of Polygon as the Value Layer for the Internet.’

Nailwal called Ethereum’s ETH a productive token, which enabled holders to become validators in the token’s respective protocol. The Polygon founder claimed POL would become a ‘hyperproductive‘ token, marking a new generation in token design.

The POL token would allow validators to validate multiple chains and accrue chain-specific rewards. Additionally, chains in the Polygon 2.0 ecosystem could offer multiple roles to the validators.

Nailwal explained that users could stake POL in a staking hub, allowing users to re-stake their tokens across chains.

POL can natively be used to stake any number of chains and participate in any number of roles. This lets stakers earn higher rewards with the same staked capital.

Sandeep Nailwal said.

Additionally, the Polygon founder stated that users can use the POL token to secure blockchains and “agg layer, DACs, and more.”

MATIC Price Paints Massively Bearish Pattern

The current Polygon token, MATIC, has been moving inside a bearish continuation pattern called the ‘Descending Triangle.’

The pattern usually forms at the end of a downtrend. Still, it can also occur as a consolidation period during an uptrend, indicating that the bullish momentum for a token is exhausting and a reversal is nigh.

A descending trendline connecting swing highs and a horizontal trendline joining swing lows form the pattern. The height of the triangle’s thickest section determines the price target in a descending triangle setup.

If the triangle setup pans out, MATIC might be looking at a theoretical price target near $0.05, a drop of 91.2% from current levels.

MATIC Price Has A ‘Meh‘ Reaction To POL News

Meanwhile, MATIC price continued to move horizontally, seemingly impervious to the news of the POL token upgrade. The Polygon token dropped nearly 2.5% to a daily low near $0.55 before the bulls recovered some lost ground.

Bulls must flip the 20-day EMA (red wave) resistance near $0.59 to instill confidence in MATIC’s price action. Moreover, breaking and consolidating above the immediate resistance level could help MATIC price target the 50-day EMA (purple wave) resistance near $0.64.

On the other hand, an increase in the selling pressure could force MATIC’s price to the support level near $0.527. Failure of immediate support might result in the Polygon token price dropping to the resistance near $0.49 before recovering.

The relative strength index for MATIC remained neutral, with a score of 30.57 on the daily charts.