Polygon (MATIC) emerged because the best-performing asset among the many top-ranking cryptocurrencies on Nov. 3 because the market’s consideration turned to the most recent Instagram and JPMorgan bulletins.
Polygon in high-profile partnerships
Notably, Meta, the mum or dad firm of Instagram, named Polygon as its preliminary accomplice for its upcoming nonfungible token (NFT) instruments that permit customers to mint, showcase and promote their digital collectibles on and off the social media platform.
In the meantime, banking big JPMorgan used Polygon to conduct its first live trade (value about $71,000) on a public blockchain, marking a concrete step towards integrating cryptocurrencies into conventional monetary frameworks.
MATIC, a utility and staking token inside the Polygon blockchain ecosystem, rose over 13% to $0.985 after the bulletins, accompanied by an uptick in day by day buying and selling quantity.
MATIC’s upside transfer got here as part of a broader restoration rally throughout the crypto sector that began in mid-June. MATIC’s value has rebounded by greater than 200%, a development that may seemingly maintain within the coming months.
MATIC’s value nears cup-and-handle breakout
The primary cue for MATIC’s bullish continuation comes from a basic technical setup.
On the day by day chart, MATIC has painted a cup-and-handle setup, which contains a U-shaped restoration adopted by a downward drifting channel. The token is now eyeing a decisive breakout above the sample’s neckline vary (the crimson bar within the chart under) to achieve $2.89, its main upside goal.
As a rule of technical evaluation, a cup-and-handle sample’s goal is measured after including the space between the cup’s backside and neckline to the potential breakout level. In consequence, MATIC is now eyeing a 200% value rally by the top of Q1 2023.
Essentially, MATIC’s demand might continue to grow, given Polygon’s rising NFT tasks launched by mainstream firms.
As an illustration, Polygon’s record of distinguished NFT companions contains names equivalent to Disney, Robinhood and Starbucks. Moreover, Polygon had a robust Q3, whereby its variety of energetic wallets reached a file excessive of 6 million, primarily pushed by the launch of Reddit’s NFT marketplace on its blockchain.
Then again, macro dangers proceed to threaten the continuing crypto market restoration, which can harm Polygon regardless of its rising partnerships with big-name manufacturers. That being mentioned, a robust pullback from the cup-and-handle sample neckline vary might invalidate the bullish setup altogether.
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