Key Takeaways:
- The recent Polygon price rally likely took cues from its recent partnerships.
- MATIC price broke out of a bullish technical pattern with a 202% price target.
PATNA (CoinChapter.com) — Polygon (MATIC), an Ethereum-scaling solution, painted an impressive performance in 2023. As a result, MATIC price gained nearly 81% YTD to form a daily high near $1.35 on Feb 9. The rally likely took cues from Polygon’s recent development news.
Polygon recently announced new updates and partnerships, the most recent being the launch of Shemaroo’s Bollywood NFT platform, Virtasy, on the Polygon network on Feb 9. The marketplace would list NFTs from iconic Bollywood films.
The NFTs would include “images, movie clips, and 3D, metaverse-ready avatars,” allowing owners to bring their Bollywood character NFTs into the metaverse.
Shemaroo has also partnered with Seracle for access to Web 3.0 infrastructure.
Pre-empting how Web3 is going to impact the entertainment industry, and to be future-ready, Shemaroo has chalked out its roadmap in this space, and the launch of Virtasy is a major step in that direction
said Hiren Gada, CEO of Shemaroo Entertainment.
In other MATIC news, Revelator, an NFT-minting platform, launched a new NFT platform on the Polygon blockchain. The Revelator Pro NFT platform would allow artists to connect with their fans and create new revenue streams directly.
Polygon Price Prediction: MATIC Likely To Confirm Bullish Pattern
Meanwhile, Polygon price broke out of a bullish technical pattern called the bull flag. Assets with strong uptrends usually form the pattern. Bull flags consist of a flag pole, resulting from a near-vertical rise in the crypto token’s prices.
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A period of consolidation succeeding the steep uptrend forms the flag of the pattern. Despite the strong vertical rally, the asset price does not drop as bulls maintain the buying pressure. As a result, the breakout from the flag pattern often results in a powerful uptrend.
Traders calculate the price target of the breakout by adding the length of the flag pole to the breakout price level. Per the rules of technical analysis, MATIC price might rise to $3.49, a jump of nearly 202% from the breakout level.
For the MATIC price prediction to hold true, the Polygon token must confirm the pattern breakout.
MATIC Price Reaches Multi-Month High
The recent bullrun helped MATIC price reach a level the Polygon token last reached in late Apr 2022. Though bears tried to halt MATIC price rally on Feb 9, the long lower wick on the day’s candle suggests bulls are determined to continue the up move.
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However, Polygon’s relative strength index, currently overbought with a value of 70.52 on the daily chart, might hinder the Polygon token’s price rally. Overbought RSI levels have traditionally been a sell signal for traders, as they often precede a bearish trend reversal.
Should the bears continue mounting pressure, the Polygon token price might drop to test support near $1.27. Breaching the immediate support would likely force MATIC price to fall to $1.16 before recovering.
On the other hand, a continued uptrend would see MATIC price challenge resistance near $1.4. Flipping the immediate resistance would help the Polygon token price reach resistance near $1.51 before downside corrections pare gains.
