Polygon’s native cryptocurrency MATIC has witnessed strong selling pressure taking 8.5% in the last 24 hours all the way to $0.92. This selling pressure in the Polygon (MATIC) price comes amid a broader market correction as it fails to hold above the crucial resistance of $1.0.

Polygon Completes Final Token Unlock Transfer

In a significant development for the Matic network, 273 million MATIC tokens, valued at approximately US$253 million, were transferred from the MATIC vesting contract to the Matic Foundation address on Wednesday, February 21. This transaction marks the completion of Matic’s last token unlock transfer, heralding the entry of MATIC into full circulation.

Polygon’s recent token transfer signifies the culmination of Matic’s token distribution process, with all allocated tokens now in circulation. As MATIC achieves full token circulation, stakeholders anticipate heightened activity and participation within the network, as well as increased liquidity and accessibility for MATIC holders.

MATIC Price Action and Expert Opinions

The Polygon (MATIC) price faces a strong rejection at $1.0 and above. It has failed to breach this resistance zone since April 2023 after it faced strong selling pressure.

According to crypto analyst Ali Martinez, Polygon demonstrates encouraging indicators from a long-term viewpoint. The current pattern suggests a multi-year symmetrical triangle formation. Sustaining a closing price above $0.96 might indicate the initiation of a Polygon price rally, potentially targeting $1.73!

#Polygon shows promising signs from a long-term perspective. The prevailing pattern appears to be a multi-year symmetrical triangle.

If $MATIC can maintain a close above $0.96, it could signal the start of a bull rally, with a potential target of $1.73! pic.twitter.com/qjgn6sN1oV

— Ali (@ali_charts) February 21, 2024

Despite being one of the most preferred Ethereum Layer-2 scaling platforms, Polygon’s MATIC underperformed its peers, or Layer-2 tokens. Over the past year, the cryptocurrency experienced a decline of approximately 32%, showcasing notably poorer performance compared to competing layer-2 coins such as OP and SKL, which have surged by 216%, 46%, and 50% respectively.

Even Arbitrum’s ARB, a token with a shorter existence of less than a year, has achieved more substantial gains than MATIC within a six-month timeframe.

However, some market analysts believe that after a long period of underperformance, the Polygon price is gearing up for a bounceback. In his update, crypto analyst NFT cryptomaniac noted:

“Nothing new here! I’ll let you know if anything changes, otherwise you just close your eyes and open it at $1.80-$1.90-$2.00 depending on the fomo.”

The post MATIC Price Tanks 8.5% As Polygon Conducts Last Token Unlock appeared first on CoinGape.

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Filed under: News - @ February 22, 2024 4:11 am