MATIC price dips despite implementation of first RIP on Polygon chain
- Polygon’s Proof-of-Stake chain is first to activate a Rollip Improvement Proposal with RIP-7212.
- MATIC network reduces transaction cost 100 times over when compared to best available alternative in same protocol.
- MATIC price could decline further, according to bearish technical indicators.
Polygon’s native token MATIC’s price is currently in a downward trend. This is despite the fact that Polygon Network has become the first Proof-of-Stake chain to activate a Rollup Improvement Proposal (RIP) — RIP-7212.
Data from Alchemy shows that RIP-7212 could reduce gas cost for rollups.
Also read: Polygon powers restaking protocol developing L2 chain, plugs into MATIC’s AggLayer
Polygon announces successful implementation of first RIP on its chain
Polygon Network, the largest Ethereum scaling solution, completed its Napoli hard fork upgrade on Thursday. The Proof-of-Stake blockchain became the first one to activate an RIP. RIP-7212 brings support for transaction cost reduction for rollups.
In its official announcement, Polygon attributed RIP-7212’s implementation to the RollCall Working Group that helps Layer 2 chains extend to the Ethereum Virtual Machine (EVM) with an open standards process similar to the base layer Ether.
Polygon Community Contributors have proposed adding support for 2 other RIP/EIP track changes in the next hard fork of PoS, EIP-3074 enhancing account abstraction options for developers on PoS, as well as PIP-30 which increases the EIP-170 Max Code Size Limit. Join the discussion…
— Polygon | Aggregated (@0xPolygon) March 20, 2024
The Polygon Community has proposed adding support for two other RIP/ Ethereum Improvement Proposals for the next hard fork of the MATIC blockchain.
According to Web3 development platform Alchemy,
With RIP-7212 verifying P256 only costs 3450 gas, a 100x reduction from the best non-protocol change option. RIP-7212 is the most gas-efficient, secure, and fastest way to verify the P256 on EVM chains.
MATIC price at risk of further decline
MATIC price is currently in a downtrend. The native token of Ethereum’s scaling chain is down 22% from its YTD peak of $1.29 on March 13. MATIC price could plummet lower, finding support at $0.8326 (23.6% Fibonacci retracement level) and in the bullish Fair Value Gap (FVG) between $0.7395 and $0.7553.
The Moving Average Convergence/ Divergence indicator supports a bearish thesis for MATIC, as its red bars line up below the zero line, signaling negative momentum in the scaling token.
MATIC/USDT 1-day chart
In the upside scenario, a daily candlestick close above $0.9907 (the 50% Fibonacci retracement level) could invalidate the bearish thesis for MATIC. MATIC price could find support at the lower boundary of the FVG, $0.7395, and the monthly support level at $0.4727.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
