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What MATIC investors should anticipate after the Ethereum merger

As the Ethereum [ETH] transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) is getting closer, it is expected that specific crypto projects will be affected by the change. Some might get a good result.

For others, the consequence could be negative. One of them is Polygon [MATIC]the scaling solution that runs on the Ethereum blockchain.

Responding to talk about the possible effects in an official statement, Polygon said its investors had almost nothing to worry about.

good vibes only

According to statement published via Polygon’s blog, the Merge would only produce good news for its network. In summary, the web3 framework noted that the result would be an “environmentally friendly scaling solution”. But how would the ETH merger influence this potential scalability?

While the translation may not result in lower gas fees for ETH, Polygon said it will for MATIC. Citing a possible 99.5% reduction in power consumption, Polygon encouraged its community to hope for a further increase in transaction speed on top of cheaper fees.

Another point of the announcement was the possibility of an improved security infrastructure on the Polygon network. The statement said,

“The merger fixes Ethereum’s massive carbon footprint, arguably making Ethereum more secure and reducing ETH inflation. Polygon benefits from the improved security of Ethereum and the general growth of the ecosystem.

Polygon isn’t the only one who can profit from the merger. Ethereum would also derive better scalability from Polygon due to its Ethereum zero-knowledge virtual machine (zkEVM).

With Polygon aiming to be the go-to platform for developing decentralized applications (DApps), the merger could bring it closer to achieving that goal.

The Carbon Neutral Crypto Project has acknowledged these views. So what position does this update leave to its native cryptocurrency, MATIC?

More, maybe less

Discussions of a positive result according to the merger could also lead to a possible rise for MATIC thereafter. However, the current state is not so encouraging.

While MATIC was worth $1.04 on August 14, its price had dropped since it was $0.81 at press time. According to data from CoinMarketCap, the 15th ranked cryptocurrency was down 13.22% over the last seven days.

Despite the anticipation, MATIC investors may need to lower their expectations. Based on the four-hour chart, MATIC may not be able to sustain the 1.13% gains it has acquired over the past 24 hours.

The chart revealed that the 20-day exponential moving average (EMA) (blue) was below the 50 EMA (yellow). This position indicates that MATIC was about to undergo a short-term bearish movement.

Additionally, the medium-term projection did not show a very beneficial trend as the 200 EMA (cyan) remained above the 20 and 50 EMA.

Source: Trading View

However, the On-Balance-Volume (OBV) appeared to be on the firmer side of a slight uptick. With these indications, MATIC investors may need to lower their expectations as the potential post-merger position appears to be trending sideways.