Polygon (MATIC) risks a 44% selloff despite the Coca Cola NFT deal

YEREVAN (CoinChapter.com) – Polygon (MATIC) price traded at $0.92 in the London session on Aug. 8 in a consolidation trend that began Aug. 2. However, the indecisive price action risks turning bearish in the upcoming sessions, based on a technical setup best visible on the four-hour chart.

MATIC paints a “rising wedge”

In detail, MATIC traded within a formation dubbed the “rising wedge.”

The pattern surfaces when the price trends higher while rising inside two ascending, converging trendlines. Then, typically, the price breaks below the wedge’s lower trend to fall by as much as the pattern’s maximum height.

As a result, analysts call it a bearish reversal pattern. Thus, the Polygon price target price could be $0.50, or 44% lower than the current value.

The declining trading volumes confirmed the selloff fears, showing low expectations from MATIC returns. Additionally, the relative strength index (RSI) diverged from the price action, printing lower highs, which could also indicate a looming reversal.

Also read: Polygon risks a 40% selloff amid $1.4B MATIC token release. 

Meanwhile, Polygon signed an NFT deal with soft drink manufacturing giant Coca-Cola Company.

Coca-Cola NFT collection

Polygon Studios announced the “first-of-a-kind, generative, and shareable collectibles on Polygon to celebrate International Friendship Day” on Aug. 7.

Emphasizing the ‘friendship’ note, the NFT collection features a “unique share-to-reveal functionality,” where each artwork will reveal after being shared with “a friend.”

Also read: Polygon (MATIC) Price Could Rally Above $1: Here’s Why.

Pratik Thakar, the Head of Global Creative Strategy at Coca-Cola, commented on the collection in the press release.

International Friendship Day—which launched our metaverse journey in 2021—is the perfect milestone opportunity to thank and celebrate the people who have joined us. We hope to strengthen and expand our ‘Real Magic’ community.

read the release.

The announcement also stated that NFT holders would gain access to “rewards and perks” as the community grows. The said “perks” will include Coke Studio-powered experiences, gaming events, and early access to Coca-Cola Creations limited-edition product launches.

Also read: Polygon (MATIC) pumps 20% after Disney collaboration announcement – will the rally last?

Despite Polygon’s key partnership with Coca-Cola, MATIC still depends on BItcoin’s price action and the broader economy. BTC value jumped nearly 5% in the previous 24 hours.

However, selloff risks remain as the geopolitical situation continues to destabilize. Additionally, MATIC technicals forecast a bearish reversal.