Polygon 2.0 Upgrade – Potential Bullish Implications For MATIC?

Polygon (MATIC) has recently made a significant announcement, unveiling the architecture of its highly anticipated Polygon 2.0. The community has been eagerly awaiting this update, hoping it will address various scalability issues and bring further improvements to the network. 

Despite the excitement surrounding Polygon’s future plans, the token, MATIC, seems to be experiencing a period of struggle.

As the crypto space evolves rapidly, investors and enthusiasts wonder what could be causing MATIC’s current downturn and how it may impact the platform’s trajectory. 

Could Polygon 2.0 be the key to revitalizing MATIC’s value and restoring confidence in the project?

A Shift For Polygon’s Scalability And Liquidity?

Polygon (MATIC) recently took to Twitter to provide a sneak peek into the highly anticipated Polygon 2.0 update, which aims to revolutionize the network by offering limitless scalability and unified liquidity.

According to the tweet, Polygon aspires to transform itself into the value layer of the Internet, emphasizing the significant role it envisions for its upgraded infrastructure.

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1/ Today, we are excited to propose the Polygon 2.0 architecture, designed to provide unlimited scalability and unified liquidity, thus transforming Polygon into the Value Layer of the Internet!

Read the blog 👇🏽 or keep scrolling 🧵https://t.co/sShy6R1E6R pic.twitter.com/BTdwkri4nI

— Polygon (Labs) (@0xPolygonLabs) June 29, 2023

The architecture of Polygon 2.0 comprises four distinct protocol layers, each serving a crucial purpose within the network, contributing to the overall functionality and efficiency of the platform. Notably, Polygon’s staking space has witnessed growth within the span of just seven days.

MATIC market cap currently at $10 billion on the weekend chart: TradingView.com

Staking Rewards data reveals a noticeable increase in the number of MATIC stakers during this period, reflecting the growing interest and participation in the Polygon ecosystem.

Despite the positive developments in Polygon’s staking community, the MATIC token has encountered a minor setback in its market value.

CoinGecko reports the current price of MATIC at $0.659, indicating a slight 0.2% decline in the past 24 hours and a 2.6% loss in value over the past seven days.

Source: Coingecko

Mixed Signals In MATIC Price Report

The latest MATIC price report presents a somewhat intriguing scenario, with certain metrics displaying bullish signals while others suggest a contrasting outlook.

Among the positive indicators, the Moving Average Convergence Divergence (MACD) signaled a bullish edge in the market, instilling optimism among investors.

Additionally, the Relative Strength Index (RSI) showed an uptick, indicating increased buying pressure and potential strength in MATIC’s price movement.

However, the report also highlighted a concerning aspect of MATIC’s price trend. The gap between the 20-day Exponential Moving Average (EMA) and the 55-day EMA was widening, raising red flags among traders and market observers.

A significant and increasing gap between these two EMAs could suggest a potential loss of short-term momentum and might indicate a more prolonged downtrend for the token’s price.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from The Daily Hodl