Polygon [MATIC] Offers Investors More Gains into the Weekend

Polygon [MATIC] offered investors more gains into the weekend as it broke above its 12-day-long price consolidation range on Thursday, 26 January, offering a 15% gain. The rally slowed after hitting the overhead resistance of $1.1900, with its value at $1.1555 at press time.

January’s rally was slowed by a price consolidation range of $0.9283 to $1.033, but the break above this range saw MATIC hit its bullish target of $1.1252. This target was then flipped into an immediate support level. If the $1.1252 support level holds in the next few days, MATIC could target its November high of $1.300, offering a potential 15% rally.

The Relative Strength Index (RSI) on the 12-hour chart is at 66, indicating a bullish MATIC, making it likely to have a bullish bias in the next few days. However, if the $1.1252 support level drops, bulls could find another steady level at $1.0733.

According to Santiment data, there were a handful of whale transactions above $100K by press time. The historical pattern shows that these transactions are associated with price surges, so we can expect another price rally. Long-term holders also saw profits, especially after Thursday’s bullish break out of the price consolidation range.

However, the price/open interest divergence, as indicated by Coinglass, could delay a strong momentum in the short term. It shows that money moved out of MATIC’s futures market despite the rising prices.

In conclusion, MATIC’s break above its price consolidation range and the bullish indicators from the RSI and Santiment data suggest that the cryptocurrency is poised for more gains in the near future. Keep a close eye on the $1.1252 support level and the price/open interest divergence to stay ahead of the market.

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