Polygon Witnesses Strong Fundamentals Boosting Native Tokens
Polygon’s MATIC rebounded sharply on Tuesday
MATIC faces further pressure as price breaks below the moving averages.
Polygon’s MATIC/USD rarely misses your go-to basket of cryptocurrencies. This is one of the cryptocurrencies making good headlines. Prices have also responded well to the strong fundamentals.
Polygon’s latest foundation is its partnership with Starbucks. The coffee chain giant said he will use Polygon for collectible digital stamps. The move is part of the company’s entry into Web3 with the Starbucks Odyssey program.
On August 31st, Robinhood announced that users would be able to send and receive MATIC over the Polygon network. This extends the utility of her MATIC beyond the Ethereum network. The move was inspired by the need to reduce the enormous costs of the Ethereum network.
MATIC Breaks Below Moving Averages, Adding Bearish Pressure
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Source – TradingView
From a technical perspective, MATIC is not yet in the buy zone. At the current $0.85 trade, the price could fall further to the minor support at $0.76.
Another bearish indicator is the moving average. MATIC is trading below the 20-day and 50-day moving averages. Similarly, the RSI reading of 48 indicates that MATIC is not oversold yet. The more likely direction is downwards due to mounting bearish sentiment after inflation data.
Conversely, MATIC is holding the uptrend line. MATIC can become bullish if the price sustains the trendline. Investors should consider buying on signals of price action or when the token rebounds above its moving average.
MATIC remains vulnerable, but the uptrend line could ignite a bullish move. Investors should watch out for bullish signals. A break below the trendline will sink the token to the minor support of $0.76.