Polygon Announces POL Rebrand: Can MATIC Price Follow Through?

Polygon (MATIC) price, a Layer 2 scaling solution for Ethereum, shows signs of recovery after its recent rebound. Positioned at a critical support level, MATIC price is ready for a quick rally  coupled with the surge in buying interest

Polygon Announces POL Rebrand, All Eyes on MATIC Price

Polygon announced a significant update scheduled for September 4, with the transition from MATIC to the new POL tokens. This change will make POL the primary gas and staking token within MATIC’s Proof-of-Stake (PoS) network. This update may potentially affect the MATIC price.

Polygon announced that the migration of MATIC to POL tokens will take place on September 4. POL replaces MATIC as the native gas and staking token of the Polygon PoS network and will play a key role in the AggLayer. MATIC holders on Ethereum, Polygon zkEVM, and CEX may need to…

— Wu Blockchain (@WuBlockchain) August 19, 2024

The transition is set to unfold in multiple stages. Initially, POL will take over MATIC’s role on the network. Further stages will integrate POL more deeply into Polygon’s innovative AggLayer project.  This development is poised to enhance the network’s functionality and efficiency, marking a pivotal evolution in Polygon’s blockchain ecosystem.

MATIC Price Analysis As Market Shows Bullish Signals

Over the past 24 hours, the Polygon price has shown volatility with notable upward movement. As of reporting time, the MATIC price hovered at $0.4184, marking an increase of 2.32% during the U.S. trading hours. According to CoinMarketCap data, the cryptocurrency has seen a surge in trading volume, up 30% to approximately $144 million, indicating heightened investor interest. 

The Layer 2 token may see a positive trend if it surpasses the resistance at $0.45, potentially heading toward $0.5. Such an advance could pave the way for MATIC price to retest the $0.55 level. The four-hour technical indicators show a steady uptrend. The Moving Average Convergence Divergence (MACD) shows a slight bullish crossover. The signal line is just above the zero line, suggesting that there might be continued upward movement if the trend holds.

POL Open Interest Surge Reflects Market Confidence

According to Coinglass data, Polygon’s derivatives trading volume surged 30.20% to $117.54 million. Open interest also rose by 3.90%, reaching $117.01 million. This increase could potentially influence MATIC price. The rising interest in MATIC options indicates growing trader confidence, possibly boosting the asset’s price.

On the downside, a decline in market conditions could push MATIC price back to the $0.41 support. If negative trends persist, the price could further slip to $0.4, signaling a shift toward a bearish market.