On Thursday, the Polygon Foundation announced the date of the upcoming MATIC to POL upgrade after reaching community consensus. The long-awaited token migration will take place in less than two months and is intended to kick off Polygon’s native token expansion. MATIC saw a 7% drop following the news.

Save the Date: Polygon Token Update Coming Soon

Ethereum’s Layer 2 scaling solution, Polygon, has revealed the highly anticipated upgrade date for its native token. The initial phase, scheduled for September 4, will begin with the token migration from MATIC to POL.

According to the announcement, POL will initially replace MATIC “as the native gas and staking token for Polygon PoS.” The upgrade went live on the testnet on July 17 to “serve as a dress rehearsal” to identify and resolve potential issues before migrating to the mainnet.

The Polygon PoS upgrade from MATIC to POL is a major undertaking requiring the highest possible level of security, including stalwart testing. (…) The testnet migration allows users, developers, and infrastructure providers to familiarize themselves with the upgrade processes, providing technical validation and minimizing disruption during the mainnet upgrade.

In subsequent phases, the POL upgrade aims to expand Polygon’s usability as an aggregated blockchain network by providing security and “unifying liquidity and shared state across multiple chains.”

According to the post, some MATIC holders may need to take some action to migrate depending on where they hold their tokens. POL will be automatically updated for MATIC holders on Polygon PoS and no action is required.

In the meantime, users of Ethereum, Polygon zkEVM, or centralized exchanges (CEXes) need to take action. These holders will need to upgrade to POL via the token migration agreement.

MATIC down 7%. Next step $0.4 or $1?

Following the announcement of this news, the price of the native Polygon token fell by about 7%. At the time of the announcement, the token was valued at $0.54, and within the next 2 hours, its price dropped to $0.52.

MATIC price has fallen to the $0.51 support zone, currently hovering between the $0.513 and $0.518 range. This result marks a 4% retracement on the monthly chart. However, the token shows green numbers on the weekly and biweekly time frames, with an escalate of 2%. Furthermore, MATIC registers a 34% escalate in its daily activity, with a daily trading volume of $374.7 million.

Some market observers have conflicting opinions on the performance of Polygon’s native token. Crypto analyst The Cryptonomist common bearish forecast for MATIC in post X.

According to the post, the analyst highlighted that MATIC had a “beautiful breakdown” from a “large rising wedge with higher TF resistance.” This suggested to the analyst that the token will continue to fall even if a retest is possible. As a result, she suggested a price target of $0.4.

Meanwhile, Zayk’s charts he stated that MATIC is moving inside a falling wedge pattern on the macro chart. The analyst believed that a breakout from the bullish pattern could fuel a rally towards the $1 price range.

Cryptocurrency analyst Alex Clay believes that MATIC is at a “generational bottom.” Clay highlighted that the token has seen a 20,000% return following the channel’s previous 630-day accumulation.

The analyst believes that MATIC’s current 1218-day accumulation inside a symmetrical triangle could lead to double-digit price targets. His forecast includes hitting the resistance levels of $4.5, $7.1, and $9.75 before hitting the double-digit target.

Featured image from Unsplash.com, chart from TradingView.com