Over the past few months, cryptocurrency asset prices have moved in a steady, rhythmic pattern of taking one step forward only to take another back. POL (formerly MATIC), the upgraded token of the Polygon PoS network, has been no exception. The asset has recently entirely erased gains that saw it outperform the broader crypto market at one point over the weekend.

Polygon’s POL (MATIC) Gives up Binance-Led Gains

On Friday, September 13, Polygon’s POL outperformed the broader crypto market by surging over 18% from the $0.38 price point to highs around $0.45 as Binance announced the completion of its migration from MATIC to POL and the listing of the new token. Fast-forward to Monday, September 16, however, and the asset has now given up all these gains.

POL is again trading at the $0.38 price point, representing a 6% decline in the past 24 hours, according to CoinMarketCap data at the time of writing. The asset drop comes amid a broader market slide sparked by speculation over the Federal Reserve’s anticipated interest rate cut this week.

Bitcoin (BTC), the largest crypto asset by market capitalization, has fallen below the $58,000 price point to trade 3.81% lower than 24 hours ago. Similarly, other leading crypto assets, like Ethereum (ETH), BNB, and Solana (SOL), are posting losses of 4%, 5%, and 3%, respectively.

What Are the Odds of a POL (MATIC) Rebound?

Like the broader crypto market, the chances of a near POL rebound will likely be decided by how much the Fed cuts rates.

In a previous statement to DailyCoin, CoinShares Head of Research James Butterfill suggested that a 50 basis point rate cut would provide the crypto market with significant tailwinds. Veteran trader Craig Shapiro appears to support Butterfill’s view in a post over a week ago, adding that a lower-than-50 bps cut could lead to a risk market correction.

At the time of writing, the CME FedWatch Tool suggests a 59% chance of a 50 bps cut on September 18, compared to a 41% chance of a 25 bps cut.

On the Flipside

Polygon’s native token has already been in a months-long downtrend before the recent market slide.

The magnitude of the impact of the Fed rate cut decision remains to be seen.

Why This Matters

POL’s weekend surge had sparked renewed optimism over the price trajectory of the asset after months of decline.

Source : DailyCoin - Sep 16, 2024