MATIC price eyes 200% gains on Polygon adoption by Instagram, JPMorgan
Polygon (MATIC) emerged as the best-performing asset among the top-ranking cryptocurrencies on Nov. 3 as the market's attention turned to the latest Instagram and JPMorgan announcements.
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 the 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.
Polygon'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.
The first cue for MATIC's bullish continuation comes from a classic technical setup.
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 now eyes 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 now eyes a 200% price rally by the end of Q1 2023.
Fundamentally, MATIC's demand could keep growing given Polygon's growing NFT projects
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