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POL token saw tight range-trading between $0.36 and $0.44 range across September.
The 200-day SMA hovers below the 50-day and 100-day SMAs on the POL/USDT 4-hour. chart.
As a seasoned crypto investor with a knack for spotting trends and understanding technical indicators, I must admit that September was a rollercoaster ride for my Polygon [POL] holdings. While I was initially optimistic about the ecosystem’s token swap, the price action in the last week of the month left me quite disheartened.
In simpler terms, Polygon (POL) struggled during September, going against the generally positive momentum in the broader cryptocurrency market. This was surprising because there had initially been a bit of optimism about the token swap within its own ecosystem.
On September 4th, the activation of an upgrade within the layer 2 scaling network kicked off the long-awaited transition of MATIC tokens into POL tokens, a change designed to unleash greater functionality and adaptability.
Despite the hype around this milestone, POL reversed its gains in the last week of the month.
According to data from TradingView, the token’s price peaked at $0.446 on September 28th and then decreased to $0.398 by the end of the month.
At the moment of reporting, POL (previously known as MATIC), was trading at a price of $0.38, experiencing a 5.6% decrease compared to today’s opening, and currently standing 70% below its record high on March 13th.
Holder profitability heading into Q4
In stark contrast to Bitcoin, several alternative cryptocurrencies experienced positive growth in September, a month typically marked by unfavorable returns, due to their less-than-impressive price movements.
Data from Coinglass indicates that Bitcoin’s value climbed by approximately 7.29% during September, whereas Ether experienced a rise of roughly 3.56% within the same timeframe.
It’s particularly worrying that so many Polygon (POL) token holders are facing potential losses, as suggested by data from IntoTheBlock. The report indicates that up to 95% of these investors might be in this situation. This unfortunate circumstance applies to a significant number of long-term holders – around 81% who have held the token for a year. During this period, Polygon has experienced a decrease of approximately 37% in value.
Ecosystem milestones
Recently, Polygon Labs implemented the Ahmedabad hardfork on their Proof-of-Stake (PoS) primary network, which followed a 14-day trial phase on the Amoy test network.
As an analyst, I’m excited to share that the recent upgrade on Polygon’s platform is a significant milestone, signifying a pivotal point in our roadmap. This update incorporates three key proposals: PIP-30, PIP-36, and PIP-45. These improvements are not just steps, but essential strides that will shape the future of our ecosystem.
The proposals introduce several optimizations to the PoS chain, primarily focused on improving the experience for decentralized application (dApp) users and developers.
Proposal (PIP) 30 expanded the upper limit for code size from 24KB to 32KB, thereby empowering developers building decentralized applications (dApps) to handle intricate contract deployments and logic more efficiently.
POL/USD technical analysis
Looking at the 4-hour POL/USDT chart, the Relative Strength Index (RSI) briefly rebounded from an oversold state it reached on Monday, only to fall once more. At the moment of this writing, the RSI value was recorded as 30.61.
On September 28, the 200-day Simple Moving Average (SMA) dropped beneath the 100-day SMA, mirroring its fall below the 50-day SMA the day before.
Translation suggests these transitions signal a decrease in strength and imply that the Price of POL may continue to be influenced by downward forces in the short term.
Previously, a bearish crossover pattern occurred where the 50-day Simple Moving Average (SMA) started to rise and surpassed a relatively stationary 200-day SMA on the 24th of August. Subsequently, the 100-day SMA, which was also trending upward, crossed above the 200-day SMA three days later on the 27th of August.
Following the crossover, the price of POL experienced a significant drop, going from $0.576 on August 24 down to $0.415 by August 30.
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2024-10-02 11:04