Key Reasons Why POL Price Could Soar Soon

POL, previously known as MATIC, has stabilized in price over the past three weeks. However, with increased adoption of the Polygon Network, indications suggest that a significant rally might be imminent. As of August 29, POL was priced at $0.24, reflecting a substantial rise from its lows earlier this month. Several bullish developments could propel its value further.

Key Takeaways:

POL is currently priced at $0.24, showing positive trends in the market.
The U.S. Department of Commerce plans to utilize Polygon for posting official GDP data, enhancing its credibility.
A proposal in the Philippines could further establish Polygon’s use in government operations.
Polygon's upgrade to a native USDT format may lower transaction fees and attract more users.
The token is consolidating within a channel, indicating a potential breakout or reversal in the near future.

Polygon (POL) has held steady for the third week in a row, but an increase in its use indicates that an upswing may be coming soon. As reported by crypto.news, POL (formerly MATIC) was trading at $0.24 on August 29, with a market cap exceeding $2.59 billion. The token is currently up 26% from its August lows and 50% above its lowest point of the year. However, it remains 54% lower than its peak in January and nearly 80% below its all-time high.

Currently, several encouraging developments could propel POL’s price higher.

Top reasons why POL price may jump soon

Government Backing

First, the U.S. Department of Commerce has chosen Polygon as one of the select blockchain networks to post official GDP data on-chain. Such significant government backing could attract new investors and lead to a lasting appreciation in POL's price, as it integrates further into global data systems.

Potential in the Philippines

Second, a lawmaker in the Philippines has suggested using the Polygon blockchain to secure documents related to the national budget. Should the Philippine government decide to adopt Polygon, it would enhance the project's visibility and credibility, potentially boosting its price in the months ahead.

Reduced Transaction Costs

Third, Polygon recently upgraded its USDT supply to a native omnichain-compatible format known as USDT0. This means that users can now transact on Polygon without needing to bridge from Ethereum, resulting in lower transaction fees across decentralized finance (DeFi) protocols.

Growth in Real-World Assets

Moreover, Polygon is gaining traction in the real-world asset (RWA) sector. Securitize, a prominent platform for tokenizing real-world assets, has deployed over $72.9 million worth of tokenized assets on Polygon, involving notable financial institutions such as BlackRock, Apollo, and Hamilton Lane.

Technical Analysis

On the daily chart, POL has been consolidating within a tight range of $0.22 to $0.26 since early August, creating a horizontal channel. Typically, this pattern is interpreted as a potential continuation before a breakout. A decisive move above the upper boundary could indicate a bullish breakout, while falling below the lower boundary might signal a trend reversal.

Currently, technical indicators are in favor of a bullish outlook. The Supertrend indicator has turned green, often interpreted as a buy signal by traders. Furthermore, the 50-day simple moving average has crossed above the 200-day SMA, confirming what's known as a golden cross, a robust bullish signal in technical analysis.

If a breakout above the psychological resistance level of $0.26 occurs, additional gains could be on the horizon, especially if the golden cross continues to influence short-term price movement. Conversely, if POL drops below the parallel channel, it could slide towards its nearest support level at $0.19, which aligns with its August low.

Disclaimer: This article does not offer investment advice. The analyses provided here are for educational purposes only.