Polygon, which recently announced a deal with Meta Platforms, rebounded nearly 32% after a drop in US CPI inflation weakened the US dollar and fueled sentiment on risky assets:
- Polygon is a project closely related to the Ethereum blockchain. Despite large market declines, the cryptocurrency has defended key price levels and is still trading nearly double its June lows. The relatively positive sentiment towards the sector that the Polygon market experienced during the recession could be a positive omen for the future of the project, which recently overtook Solana and found itself in the top 10 of the largest cryptocurrencies competing with Cardano.
The partnership for NFT tokens in Meta Paltforms apps looks optimistic. Meta owns Instagram, Facebook, and What’s App, so it has a multibillion-dollar user base that could potentially drive Polygon’s future adoption. However, it is still too early to trumpet strategic success. At this point, the option to trade and create NFT tokens in Meta aplias has just begun, and it is not yet clear how it will be received by the market and consumers.
Polygon has rebounded from an important support zone near 0.7580, which coincides with previous price reactions, the 200 SMA (red line) and a bullish wave. Buyers have managed to clear most of the recent losses and are approaching the resistance at 1.12, which coincides with the 61.8% Fibonacci retracement of the bullish wave that began in early 2021. As long as the price is Below this level, the main sentiment remains bearish and another downward momentum could be triggered. Source: xStation5
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