Polygon eyes $1: Could MATIC double its price after POL upgrade?

• A bullish breakout above a pattern could result in a 100% price increase.
• Polygon was awaiting a major network upgrade scheduled for the 4th of September.

Polygon [MATIC] fell victim to multiple price corrections over several months, causing it to bleed its market capitalization. However, the token recently gained bullish momentum, which can be attributed to the current market condition.

Things can get even better in the coming days as the blockchain is awaiting a major upgrade. 

Polygon to begin its recovery journey 

As per CoinMarketCap’s data, MATIC’s price dropped by more than 17% in the last 30 days. Because of that, only 21.6k MATIC addresses were in profit, which accounted for just 3% of total Polygon addresses. 

Source: IntoTheBlock

Nonetheless, the token did gain bullish momentum in the last 24 hours as its price surged by over 5%. At the time of writing, Polygon was trading at $0.4421 with a market cap of over $4 billion, making it the 21st largest crypto.

Meanwhile, ZAYK Charts, a popular crypto analyst, recently posted a tweet revealing a major development. As per the tweet, a falling wedge pattern appeared on the token’s chart in late 2023.

Since then MATIC’s price has been consolidating inside it. At press time, it was on the verge of breaking out, which could result in a 100% price increase. This meant that MATIC might soon double its price and reach $1.

Source: X

Are investors buying MATIC?

Since there were chances of MATIC’s recovery, AMBCrypto assessed its on-chain data to find out how investors were behaving.

As per our analysis of Santiment’s data, investors’ were not moving MATIC much. This was the case as MATIC’s supply on exchanges and supply outside of exchanges charts were closely knit.

Additionally, the whales also didn’t make any major moves as the supply held by the top address chart remained somewhat flat last week.

Nonetheless, the MVRV ratio improved drastically, which can be inferred as a bullish signal. 

Source: Santiment

Apart from this, Polygon was also awaiting a major upgrade, which will be released on the 4th of September, that has the potential to stir up bullish momentum around it.

To be precise, MATIC will be migrated to POL on that date, adding several new benefits. For instance, the upgraded token, POL, will be used as a gas token for the Polygon ecosystem.

Polygon’s recent tweet mentioned,

“POL ensures the Polygon PoS network remains functional, secure, and efficient by providing consistent transaction fees and reducing friction for users.” 

AMBCrypto then planned to take a look at MATIC’s daily chart to find whether a breakout above the aforementioned pattern was possible in the short term.

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As per the Bollinger Bands, MATIC had already broken above its 20-day simple moving average (SMA) resistance. 

The Chaikin Money Flow (CMF) registered an uptick, hinting at a continued price rise. However, the Money Flow Index (MFI) looked bearish as it moved downwards. 

Source: TradingView