Matic Polygon eyes 200% gains on PolygonPolygon in high-profile partnerships
Notably, Meta, the parent company of Instagram, named Polygon as its initial partner for its upcoming nonfungible token (NFT) tools that allow users to mint, showcase and sell their digital collectibles on and off the social media platform.
Meanwhile, banking giant JPMorgan used Polygon to conduct its first live trade (worth about $71,000) on a public blockchain, marking a concrete step toward integrating cryptocurrencies into traditional financial frameworks.
MATIC, a utility and staking token within the Polygon blockchain ecosystem, rose over 13% to $0.985 after the announcements, accompanied by an uptick in daily trading volume.
MATIC’s upside move came as a part of a broader recovery rally across the crypto sector that started in mid-June. MATIC’s price has rebounded by more than 200%, a trend that will likely sustain in the coming months.
On the daily chart, MATIC has painted a cup-and-handle setup, which comprises a U-shaped recovery followed by a downward drifting channel. The token is now eyeing a decisive breakout above the pattern’s neckline range (the red bar in the chart below) to reach $2.89, its primary upside target.
As a rule of technical analysis, a cup-and-handle pattern’s target is measured after adding the distance between the cup’s bottom and neckline to the potential breakout point. As a result, MATIC is now eyeing a 200% price rally by the end of Q1 2023.
Fundamentally, MATIC’s demand could keep growing, given Polygon’s growing NFT projects launched by mainstream companies.
On the other hand, macro risks continue to threaten the ongoing crypto market recovery, which may hurt Polygon despite its growing partnerships with big-name brands. That being said, a strong pullback from the cup-and-handle pattern neckline range could invalidate the bullish setup altogether.
Technical analysis:
I have marked the important zones with numbers and explained them :
1 Agresive Sellers shortened Matic at 2.60. Technically The market had very low bullish volume and huge bearish Deltas .
The market broke the short term support at 1.75 and it became again resistance.
Now the sellers started to build their positions stronger. Long term buyers took partial profits here, new buyers took losses, and sellers sold more here.
The creation of more sell orders finally pulled down the market to the deepst waters0.39145
2 This zone was and is defending strongly by Matic Long holders.
The sellers took some profits here.The long term buyers bought more matic and new buyers came into the market.
Also some late sellers took losses here or took profits.Also some sellers became new buyers. More Buy orders pushed up and pumped matic to 1.40(Defended ell area=Double Resistance)
3 Long move has a double support 0.73 and 0.65 area
The increased volume and delta at this area supports buying positions,but also the volatility .
4 A break above 1.5463 increases more delta bullish and more buyers will support this positin but this time more agressively.
The market has higher highs and higher Lows structure.To build a long term Bullish trend, a break above 1.5460 is essential
5 A break and holding above 1.54680 finally establishes a strong lbullish long term trend
6A break of 1.6590 is catastrophic for the majortiy bulls,but the final support 0.38 could save them.
If this zone has lost, The sellers will control the market for a longer periode, as the resitance numbers make it very hard for bulls to take advantageof the bull trend.
