The broader cryptocurrency market has had a great week so far and could see further gains in the hours and days ahead.
The cryptocurrency market has been doing well since the beginning of the week. In the last 24 hours, the total market capitalization has increased by more than 5% and currently stands at $970 billion.
If market momentum continues, total market capitalization could soon hit the $1 trillion mark for the first time in nearly a month.
Bitcoin is once again trading above $22,000 after adding more than 7% to its value in the past 24 hours. Ether looks set to break above the $1,300 resistance level after adding 6.8% to its value over the same period.
However, MATIC, the native token of the Polygon blockchain, is the top performer among the top 20 cryptocurrencies by market capitalization. MATIC is up more than 13% in the last 24 hours and 22% in the last seven days.
MATIC’s rally can be attributed to Reddit’s announcement that it launch an NFT avatar marketplace on the Polygon blockchain. The new NFT-based avatar marketplace will allow Reddit users to purchase blockchain-based profile pictures for a fixed rate, the company added.
Key levels to monitor
The 4-hour MATIC/USD chart is bullish as Polygon has performed well over the past few days.
The MACD line moved into the positive zone a few days ago and stayed there. MATIC outperformed the broader cryptocurrency market. The 14-day RSI of 76 shows that MATIC may soon enter the overbought region if the coin maintains its current momentum.
At press time, MATIC is trading at $0.6095. If the rally continues, MATIC might break above the $0.64 resistance level for the first time since June.
The weekend will be interesting for the market as a sustained positive performance could see MATIC rally towards the psychological level of $0.70.