MATIC price dips despite implementation of first RIP on Polygon chain

Source Fxstreet
  • 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. 

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

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. 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Elon Musk is doing nothing to stop Tesla’s downfallTesla sales are collapsing worldwide, and Musk’s chaotic leadership and focus on political power plays are doing nothing to stop the downfall. The start of 2025 has been troubling, particularly in Europe, where Tesla saw a 45% drop in new registrations in January compared to the same period in 2024, with further declines in February. […]
Author  Cryptopolitan
Mar 24, Mon
Tesla sales are collapsing worldwide, and Musk’s chaotic leadership and focus on political power plays are doing nothing to stop the downfall. The start of 2025 has been troubling, particularly in Europe, where Tesla saw a 45% drop in new registrations in January compared to the same period in 2024, with further declines in February. […]
placeholder
Japanese Yen rebounds from multi-week low against USD after stronger Tokyo CPIThe Japanese Yen (JPY) drops to a nearly four-week trough against its American counterpart during the Asian session on Friday amid concerns that US President Donald Trump's trade tariffs could impact key domestic exports.
Author  FXStreet
Mar 28, Fri
The Japanese Yen (JPY) drops to a nearly four-week trough against its American counterpart during the Asian session on Friday amid concerns that US President Donald Trump's trade tariffs could impact key domestic exports.
placeholder
Ethereum Price Forecast: Whales increase buying pressure as developers set April 30 for Pectra mainnet upgradeEthereum (ETH) has seen immense buying from whales on Thursday following core developers fixing April 30 as a tentative date for the Pectra upgrade to go live on mainnet.
Author  FXStreet
Mar 28, Fri
Ethereum (ETH) has seen immense buying from whales on Thursday following core developers fixing April 30 as a tentative date for the Pectra upgrade to go live on mainnet.
placeholder
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC stabilizes while ETH and XRP show weaknessBitcoin (BTC) price stabilizes at around $87,000 on Friday, as its RSI indicates indecisiveness among traders.
Author  FXStreet
Mar 28, Fri
Bitcoin (BTC) price stabilizes at around $87,000 on Friday, as its RSI indicates indecisiveness among traders.
placeholder
Left Hand in Safe-Haven, Right Hand Against Inflation: International Gold Prices Hit New Highs with Seemingly No ResistanceTradingKey – This year, record-breaking gold prices have frequently made headlines across major media outlets. Geopolitical tensions, inflation trends, and U.S. tariffs have emerged as key drivers beh
Author  TradingKey
Mar 28, Fri
TradingKey – This year, record-breaking gold prices have frequently made headlines across major media outlets. Geopolitical tensions, inflation trends, and U.S. tariffs have emerged as key drivers beh
goTop
quote