Polygon has witnessed strong fundamentals boosting the native token
Polygon’s MATIC pulled back sharply on Tuesday
MATIC faces some more pressure as the price dips below the moving averages.
Polygon’s MATIC/USD will rarely miss the basket of the go-to cryptocurrencies. It is one of the cryptocurrencies that has made good headlines. The price has also responded well to strong fundamentals.
Polygon’s most recent foundations are a partnership with Starbucks. The coffee chain giant said it would use Polygon for its collectible digital stamps. The move is part of the company’s entry into Web3 with the Starbucks Odyssey program.
On Aug. 31, Robinhood said it would let users send and receive MATIC on the polygon network. That extends the usefulness of MATIC beyond the Ethereum network. The move was inspired by the need to cut massive costs on the Ethereum network.
MATIC slides below the moving average and adds bearish pressure
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Source – TradingView
Technically, MATIC is not yet in a buying zone. At current trading of $0.85, the price could slide further towards a small support at $0.76.
Another bear indicator is the moving average. MATIC trades below the 20 and 50 day moving averages. Likewise, an RSI value of 48 suggests that MATIC is not oversold yet. With bear sentiment growing after the inflation data, a more likely direction is down.
On the other hand, MATIC has maintained a rising trendline. If the price maintains the trendline, MATIC may turn bullish. Investors should consider buying on price action signals or if the token recovers above the moving average(s).
While MATIC remains vulnerable, the rising trendline could trigger a bullish move. Investors should pay attention to bullish signals. A break below the trendline causes the token to shift towards small support at $0.76.