Home / Analysis / Crypto / Technical Analysis / Polygon Libre Launch Overshadowed by MATIC Price Dropping Below $1

Polygon Libre Launch Overshadowed by MATIC Price Dropping Below $1

Last Updated March 20, 2024 3:13 PM
Valdrin Tahiri
Last Updated March 20, 2024 3:13 PM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • Polygon announced the launch of Libre and teased new institutional partnerships on March 19.
  • While Libre’s launch signals progress in institutional tokenization, Polygon’s price has stagnated.
  • Will the positive effect of these announcements ever be reflected in the MATIC price?

The MATIC price has struggled in the current market cycle. Most coins reached new highs in 2024, but MATIC has not broken above its February 23 high of $1.57. A slew of positive announcements on March 19 also failed to cause any reaction in the Polygon price.

MATIC has been one of the few large cap cryptocurrencies that has not reached new highs in over a year. This has likely taken a toll on the crypto’s holders, who are probably wondering if they will ever be rewarded for their patience.

Polygon Announces Libre

Libre , a tokenization protocol built on Polygon’s Chain Development Kit (CDK) launched on March 19. It provides institutional investors access to tokenized funds, such as hedge funds from investment manager Brevan Howard and money market funds from BlackRock.

What this means is that investors will be able to purchase a tokenized version of each asset. Effectively, it will allow investors to jump in and out of the market whenever they choose without an intermediary. This also lowers the minimum entry point for such high-quality funds.

Additionally, Libre’s integration  with Libre Gateway and future plans to connect to the AggLayer signify a significant step towards interoperability and the evolution of composable institutional finance on the blockchain. Polygon’s AggLayer aims to enable different blockchains to connect through a single, unified Ethereum bridge.

With more institutions expected to join Polygon’s network and exciting developments on the horizon, the future of institutional finance on Polygon appears promising and poised for further growth.

However, despite these positive announcements, the MATIC price fell below $1.

MATIC Price Prediction: Is the Bottom in Place?

The MATIC price increased significantly in early 2024, culminating with a high of $1.29 on March 13. However, it has fallen sharply since. On March 19, it decreased below $1 for the first time this month.

The long-term movement shows MATIC has  traded in a range between $0.75 and $1.25 for most of the past 700 days, with the exception of small deviations above and below it.

MATIC Price Stuck in Middle of Range
MATIC/USDT Weekly Chart | Credit: TradingView

Currently, the MATIC price trades at the middle of the range at $1, after the range high rejected it.

While the RSI is still above 50, it is trending upward at a very gradual rate. Also, its ascending support trend line (black) is at risk of a breakdown. Both the price action and indicator readings fail to confirm the trend’s direction.

Whether the price closes below this level or bounces will be critical to determine the future trend.

MATIC Faces Unclear Future Despite Positive Announcements

The MATIC price has fallen by slightly more than 10% in the past 12 months and currently trades in the middle of a long-term range. While MATIC is well established with regard to institutional investors, the price action leaves much to be desired for the bulls and shows an uncertain trend.

Was this Article helpful? Yes No