As a researcher with years of experience studying and analyzing the crypto market, I find myself often intrigued by the unpredictable nature of this dynamic ecosystem. While September was generally a bullish month for Bitcoin and many altcoins, Polygon’s POL token seemed to buck the trend, experiencing a significant downturn despite its recent milestones.
Although Bitcoin and overall cryptocurrency markets finished September in an upward trend, Polygon‘s native coin, previously known as MATIC but now called POL, encountered some hurdles. While there was initial enthusiasm about the ecosystem’s token swap, the price of POL diverged from the general bullish sentiment experienced during September.
In early September, the Ethereum Layer-2 scaling network underwent an upgrade as it transitioned from MATIC tokens to POL ones, aiming to increase usability and adaptability. Although this step was met with great anticipation due to its significance, POL experienced a decline in its growth during the last week of the month.
Courtesy: Trading View
Over the past week, POL price came crashing down all the way from $0.446 on 28th September to $0.3775 as of press time. POL price is trading 6.6% down with the daily trading volumes surging 56% to $127 million.
Last month’s poor showing by POL was dramatically different from Bitcoin and various other digital currencies. In fact, Bitcoin wrapped up September with approximately 8% growth, making it the top performer in over a decade. Normally, September is a month that brings negative returns for both Bitcoin and alternative coins. However, due to the Fed’s interest rate cuts and monetary stimulus, the overall market performed significantly better than anticipated.
As a crypto investor, I find it concerning that my Polygon (POL) investment seems to be on a downward spiral. Data from IntoTheBlock suggests that an overwhelming 95% of us are grappling with unrealized losses. This is particularly true for long-term holders like myself, who have been holding onto POL for a year now. During this period, the value of POL has plummeted by a significant 37%.
Polygon Recent Milestones and POL Price Action
Last week, the Polygon blockchain activated the Ahmedabad hardfork on its Proof-of-Stake (PoS) mainnet following a two-week testing period on the Amoy testnet. This was a crucial step in Polygon’s roadmap leading to three Polygon Improvement Proposals, i.e., PIP-30, PIP-36, and PIP-45.
These suggestions enhance the PoS chain by implementing numerous optimizations, with a key emphasis on enhancing the experience for developers building decentralized applications (dApps) and their users. For instance, PIP-30 boosted the maximum code size from 24KB to 32KB, enabling more intricate contract deployments and logic execution by dApp creators. Similarly, PIP-36 addresses the problem of bridge transactions getting stuck, and also enables the replay of failed state syncs.
On the 4-hour chart for POL/USDT, the Relative Strength Index (RSI) briefly regained strength from the oversold position it reached on Monday, but then dropped again. At present, the RSI is at 30.61. Previously, the 200-day Simple Moving Average (SMA) fell below the 100-day SMA on September 28, following a drop beneath the 50-day SMA the day before.
Courtesy: TradingView
Translation of the original statement: These intersections indicate a decrease in strength, implying that the value of POL might continue to face a bearish trend in the upcoming period.
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2024-10-02 15:49