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Mass migration of Terra LUNA-based projects to Polygon started this week. A total of 48 projects from Terra’s ecosystem are moving to Polygon as part of an initiative launched by the Ethereum scaling solution in May 2022. In the event of Terra’s sister tokens LUNA-UST collapse, Polygon announced an initiative to give developers and builders in the ecosystem an opportunity to regroup.
While developers lost trust in the Terra ecosystem, Polygon welcomed projects to its blockchain. A multi-million dollar fund of about $20 million was created solely for developers migrating from Terra to the Polygon ecosystem. NFT marketplace OnePlanet and metaverse play-to-earn game Derby Stars are among the 48 projects moving to Polygon.
Large wallet investors in the Polygon ecosystem started accumulating MATIC, scooping the altcoin across exchanges in response to Reddit’s avatar marketplace launch on the blockchain. The total holdings of whales that own between 10 million and 100 million MATIC climbed to 1.32 billion tokens on July 8.
Despite the migration of projects to the Polygon ecosystem, MATIC is facing mounting selling pressure across exchanges. Between June 18 and 24, MATIC’s price doubled with rising demand for the layer-2 scaling solution. Since then, the altcoin has made several failed attempts to recover and keep up with the price rally.
MATIC is likely to collect liquidity above the $0.68 level and suffer rejection and a 20% downswing in its price. Based on the MATIC price trend, liquidity is present above $0.62, and Polygon is likely to collect it. MATIC price is expected to retrace 20% and hit support at $0.47.
If bulls take over and Bitcoin begins its recovery, MATIC could witness a trend reversal. In that case, a four-hour candlestick close above $0.68 will invalidate the bearish prediction.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.