Source : coingape.comhttps://cdn.coingape.com/wp-content/uploads/2022/01/19221535/polygon-matic-cryptocurrency-token-symbol-circle-abstract-digital-background-with-pcb-tracks-currency-coin-icon-vector-illustration_337410-11333.jpg
Polygon (MATIC) price extends the previous session’s gains on Tuesday. MATIC price back below the 50-day moving average (DMA). Further, as the price looks to heading for the second day of gains, the relative strength index (RSI) is showing a bullish crossover, with investors betting on the continuation of the uptrend for the pair.
- Polygon locks in modest gains on the first trading session of the new month.
- MATIC price consolidates in the downward channel since January 22.
- A decisive close above $1.680 would result in further appreciation of MATIC.
At the time of writing, MATIC/USD is trading at $1.654, up 0.71% for the day. As per the CoinMarketCap data, polygon not just trending higher in terms of price but overpower Shiba Inu for the 14th position in terms of market capitalization. The live market cap reads at $12,342,928,881.
Polygon price action depicts the rising popularity of the polygon’s ecosystem as a more scalable and efficient alternative to the Layer 1 Ethereum network.
MATIC Price Needs To Break Above $1.680
On the daily chart, Polygon (MATIC) price has been trading in the ‘downward channel’, which is a bearish pattern. Initially, after making all-time highs at $2.925 on December 27, the price retreated 55% toward the lows of January 24 lows.
MATIC price tested the horizontal support line at $2.004. Sellers remain fully dominated near this level to explore the lower trendline of the channel.
Now, MATIC price is moving in the range of $1.69 and $1.50 for the past 10 sessions. A catalyst is required to break the current trading range.
Both momentum oscillators are trading near the oversold zone with a neutral stance. Traders can initiate fresh long positions once the price gives a decisive close above the upper trend line of the channel at $2.004.
On the other hand, if the next day’s candle is a red one, then investors could further liquidate their holding to book profits.