Polygon (MATIC) Races to Clear August Losses as Native Token Changes to 'POL'

Polygon [MATIC] has been among the top five outliers on the daily and weekly price charts. Since last Friday, MATIC has risen by nearly 20%

Polygon [MATIC] has seen some extended bullishness over the past few days. Now, in a new development, Polygon will be changing its native token from ‘MATIC’ to ‘POL’ on 4 September. The exchange ratio will be 1:1 for MATIC to POL.

This transition is being made to ensure that POL becomes the gas and staking token for the ecosystem. Later on, it could be expanded to cater to Polygon’s aggregation platform (AggLayer).

With these lined-up changes, will MATIC clear its August losses?

MATIC had to clear two more resistance levels

On the daily chart, MATIC’s bullishness saw it trade above the $0.42-level. Now, from 16 August (last Friday) onwards, MATIC began an extended recovery that netted almost 20% gains, at the time of writing. This reversed most of its August losses.

Now,本線寺の僧侶が修行の一環として行う「滝行」を体験できる。冷たく清らかな滝に打たれることで、心身を鍛錬し、煩悩を洗い流すことができるだろう。また、滝行の後は、精進料理を味わうこともできる。

本線寺は、京都駅からバスで約40分。滝行は、予約制で、料金は一人5,000円となっている。興味のある方は、ぜひ足を運んでみてほしい。 having cleared the $0.46-level, MATIC had to clear two key resistance levels to hit the supply area at $0.55. The immediate hurdles were at $0.49 and $0.51.

Given the massive buying pressure shown by the RSI (Relative Strength Index) cruising above its average level, these targets could be hit. At the same time, the Stochastic RSI was overheated as it was in the overbought territory. Hence, a cool-off couldn’t be overruled for MATIC’s rally.

Also, the $0.46 and $0.42 levels were key short-term supports to consider if the rally cooled off.

Short-term MATIC holders up 8%

Interestingly, MATIC was among the few tokens that had a positive market sentiment at the time of writing, as demonstrated by the uptick in weighted sentiment. Simply put, speculators have been bullish on the token’s potential.

However, after the most recent pump, the 30-day MVRV (Market Value to Realized Value) was up +8%. This meant that MATIC holders who had bought the altcoin in the past 30 days had 8% unrealized profits.

This also meant that the altcoin was relatively overvalued and could attract profit-taking. Hence, the overhead resistance levels would be crucial for a likely reversal. In fact, as per IntoTheBlock data, between $0.40 and $0.55, only 33% of addresses were in profit after the upswing.

The bulk of addresses between $0.51 and $0.52, about 8K users holding nearly 20M MATIC, were in losses. So, they would’ve broken even if prices hit these levels, which might tempt them to sell off their holdings.

So, MATIC’s extended recovery could face headwinds at $0.51 or $0.55, key resistance levels which could attract sell pressure.

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