MATIC rallies following Reddit’s NFT announcement

The broader cryptocurrency market has had an excellent week so far and could record further gains in the coming hours and days.

The cryptocurrency market has been performing well since the start of the week. Over the past 24 hours, the total market cap has increased by more than 5% and currently stands at $970 billion.

If the market momentum is maintained, the total market cap could soon reach the $1 trillion mark for the first time in nearly a month.

Bitcoin is trading above $22k once again after adding more than 7% to its value in the last 24 hours. Ether looks poised to surge past the $1,300 resistance level after adding 6.8% to its value during the same period.

However, MATIC, the native token of the Polygon blockchain, is the best performer amongst the top 20 cryptocurrencies by market cap. MATIC is up by more than 13% in the last 24 hours and 22% in the past seven days.

MATIC’s rally can be attributed to Reddit’s announcement that it would 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 watch

The MATIC/USD 4-hour chart is bullish as Polygon has been performing well over the past few days.

The MACD line crossed into the positive zone a few days ago and has remained there are MATIC outperformed the broader cryptocurrency market. The 14-day RSI of 76 shows that MATIC could 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 could surge past the $0.64 resistance level for the first time since June. 

The weekend will be an interesting one for the market as a sustained positive performance could see MATIC rally towards the $0.70 psychological level.