An extension of the upside momentum could see MATIC/USD break towards the $1.00-$1.20 range.
The price of Polygon (MATIC) rose 33% to touch highs of $0.84, after positive sentiment in early trading sessions on Tuesday buoyed the entire cryptocurrency market.
Other major gainers among the top 20 include Solana (SOL) +17%; Dogecoin (DOGE) +16%; Cardano (ADA) +11% and Binance Coin (BNB) +10%. Bitcoin (BTC) is up over 6% while Ethereum (ETH) has jumped 9.6% as of writing.
The bullish rebound for MATIC price comes on the back of a 41% downtrend over the past nine days. Despite the gains, Polygon’s price remains below a long-term bearish trendline and bulls need to take full advantage of the market sentiment to breach the barrier near $0.85.
MATIC price analysis
MATIC price currently hovers above a horizontal support line at $0.78 after slightly retreating from the 38.2% Fibonacci retracement level of the move from $1.17 to $0.62.
Even then, bulls appear determined to build on the 33% gains seen over the past 24 hours as shown by the consecutive green candles on the 4-hour chart.
As can be seen on the above chart, MATIC’s price is above the 20-day exponential moving average that currently provides support at $0.75. The last two 4-hour candlesticks show that bears have tried to push prices lower, but bulls still have the bigger say as they hold the pair above $0.80.
The RSI and MACD both support a bullish flip given the momentum indicator is rising above 50 while the latter is increasing in the bullish zone.
If bulls sustain the buying pressure, Polygon price could seek fresh gains near the 50% Fibonacci retracement level ($0.89) and then the 78.6% Fib level ($1.05). From here, upward momentum will likely propel MATIC/USD to the $1.17-$1.28 range short term.
On the contrary, MATIC price might flip lower and correct to lows of $0.74. This will likely be the scenario if bulls fail to hold the said $0.80 support zone. Should another downswing materialize before bulls break above the aforementioned barriers, the token’s price might rely on support at $0.66 and then $0.62.