Polygon Labs announced that it will replace MATIC with a new token, POL, on September 4. The approaching migration date has contributed to a downtrend in MATIC’s price, with further declines possible.
Points
- Polygon to replace MATIC with POL on September 4
- MATIC’s price has dropped by almost 10% in the last month
- Large holder netflow for MATIC has plummeted by 271%
- Most MATIC holders are currently at a loss
- Potential for further decline to $0.42 if bearish trend continues
Polygon Labs announced on July 18 that it will replace MATIC, the native token of its Layer 2 network Polygon, with a new token, POL, on September 4. As the migration date approaches, MATIC is poised to continue its downtrend.
At press time, MATIC is trading at $0.52, with the altcoin’s value having plunged by nearly 10% in the last month. Data from IntoTheBlock indicates that the token’s large holder netflow has plummeted by 271% in the past 30 days. Large holders, or whales, refer to addresses that hold over 0.1% of an asset’s circulating supply. The decline in large holder netflow suggests significant selling pressure from these major investors.
According to current data, 93% of all MATIC holders are “out of the money,” meaning the current market price is lower than the average purchase price of the tokens they hold. Conversely, only 5% of holders are in profit, with the remaining addresses at breakeven.
MATIC’s Directional Movement Index （DMI） setup further confirms the bearish bias toward the altcoin. At present, the token’s negative directional indicator （-DI） is above its positive directional indicator （+DI）, indicating stronger negative momentum.
If selling pressure continues to outweigh buying activity, MATIC’s value could potentially drop to $0.42. This would be the lowest level since July 2022. However, if demand for MATIC increases and the current trend reverses, the token’s price may climb to $0.63.
解説
- Token migration: The upcoming migration from MATIC to POL has contributed to the downtrend in MATIC’s price, with significant selling pressure from large holders.
- Investor sentiment: A high percentage of MATIC holders are currently at a loss, further exacerbating selling pressure and bearish sentiment.
- Directional Movement Index: The DMI setup confirms the bearish trend, with stronger negative momentum indicating potential further declines.
- Price outlook: If selling pressure continues, MATIC could drop to $0.42, but a reversal in trend and increased demand could push the price to $0.63.