Polygon’s native token, MATIC, is showing strong bullish momentum as it continues its upward journey, breaking key technical levels and establishing solid support above $0.650. The cryptocurrency is approaching a crucial resistance zone near $0.70, with several positive technical indicators pointing to further gains if the price can sustain its current momentum.

MATIC Shows Steady Growth, Breaking Above Key Levels

MATIC has been on the rise, gaining traction from the $0.580 support level. The token has steadily broken through key price barriers, including a significant move above $0.620, mirroring the upward trends seen in major cryptocurrencies like Bitcoin and Ethereum. This upward trajectory has placed MATIC in a favorable position above the $0.650 level, and the digital asset is now trading above the important 100-hour simple moving average.

Key Technical Levels and Resistance Zones

A major turning point for MATIC came when it successfully broke above the bearish trend line at $0.6350. This level had previously acted as resistance, but the breach suggests that market sentiment has shifted, and MATIC may now be on the path to testing higher levels. The token is currently approaching the $0.680 resistance zone, with a key psychological level at $0.70.

The price action is supported by the 23.6% Fibonacci retracement level, which is measured from the recent low of $0.5715 to the local high around $0.6800. As long as MATIC stays above the $0.650 support level, traders remain optimistic about the potential for further price advancement. A break above the $0.70 mark could trigger a wave of buying interest, possibly sending MATIC toward new resistance levels around $0.750, with further upside potential near $0.780 or even $0.80.

Potential Downside Risks and Support Zones

While the bullish outlook is strong, the market structure does present some downside risks. If MATIC fails to breach the $0.680 resistance level, the price may experience a pullback. The immediate support level lies at $0.650, with a more significant support zone around $0.6250. This $0.6250 level corresponds to the 50% Fibonacci retracement from the recent price rise, and a break below it could lead to further declines, possibly testing the $0.60 support level.

Additional support lies at $0.5750, which could act as a critical point in the event of a deeper retracement. However, the market structure, including the series of higher lows and the increasing trading volume, suggests that any short-term retracement may be limited, with the $0.650 and $0.625 levels acting as solid foundations for a potential rebound.

Bullish Technical Indicators Support Continued Growth

The technical indicators continue to favor the bulls. The MACD (Moving Average Convergence Divergence) indicator is showing increasing bullish momentum, signaling that buying pressure is growing in the market. The Relative Strength Index (RSI) remains above the neutral 50 mark, indicating healthy buying activity without signaling overbought conditions. This gives MATIC room for further price movement before it becomes technically exhausted.

Volume analysis also supports the upward trend, with increased trading activity validating the current price rise. The rising volume during price increases is often seen as a positive technical signal, suggesting that the momentum is being driven by genuine market interest.

Looking Ahead: What’s Next for MATIC?

As MATIC approaches the $0.70 resistance, traders will be closely watching how the price behaves at this critical level. A successful break above $0.70 could lead to further bullish activity, while a failure to break through could result in a short-term pullback toward the key support zones.

Overall, the outlook for Polygon (MATIC) remains positive, with the bullish trend supported by both technical indicators and strong market sentiment. However, traders should remain cautious and watch for any signs of weakness at the key resistance levels. If MATIC continues to maintain its current momentum, it could be poised for further gains in the coming weeks.