Polygon (MATIC) Regains Footing With Starbucks Partnership News

Please fol­low and like us:
Pin Share

While Poly­gon (MATIC) has bro­ken out from a long-term descend­ing resis­tance line, it has yet to clear an impor­tant hor­i­zon­tal resis­tance which would con­firm that a bull­ish rever­sal is in place.

On Tues­day, it was announced that Star­bucks and Poly­gon will part­ner in a non-fun­gi­ble token (NFT) loy­al­ty pro­gram called “Star­bucks Odyssey”. The pro­gram allows cus­tomers to pur­chase or earn dig­i­tal assets, which in turn will unlock exclu­sive rewards and experiences. 

The dig­i­tal assets will be col­lec­table stamps that are in the form of NFTs. The main goal of the pro­gram is to onboard the exist­ing cus­tomer base into Web3.

Long-term resistance

The week­ly chart shows that MATIC broke out from a descend­ing resis­tance line in July 2022. The break­out was cru­cial, since the resis­tance line had pre­vi­ous­ly been in place since the all-time high. So, break­outs from such long-term struc­tures usu­al­ly lead to sus­tained upward movements. 

While the price has increased con­sid­er­ably, the week­ly RSI has yet to break out from its bear­ish diver­gence trend line (green line). 

This would be required in order for the bull­ish rever­sal to be con­firmed. More­over, this would also cause an RSI increase above 50. 

If the upward move­ment con­tin­ues, the clos­est resis­tance area would be at $1.31, cre­at­ed by the 0.382 Fib retrace­ment resis­tance lev­el and a hor­i­zon­tal resis­tance area.

Future MATIC movement

The dai­ly chart shows that the price had been increas­ing along­side an ascend­ing sup­port line since June 18. The upward move­ment led to a high of $1.05 on Aug 14. How­ev­er, the price was reject­ed by the minor $1 resis­tance area. 

After­ward, MATIC broke down from the ascend­ing sup­port line that had been in place since the June lows. While the price has been increas­ing since, it is pos­si­ble that the upward move­ment could be just a retest of the $1 area and the ascend­ing sup­port line. 

If anoth­er drop fol­lows, the 0.618 Fib retrace­ment resis­tance lev­el at $0.60 would be expect­ed to pro­vide support.

The RSI is freely mov­ing above and below 50, fail­ing to deter­mine the direc­tion of the trend.

Final­ly, the six-hour chart shows that MATIC is trad­ing inside an ascend­ing par­al­lel chan­nel and is cur­rent­ly fac­ing resis­tance from the 0.618 Fib retrace­ment resis­tance lev­el at $0.94. 

When com­bined with the bear­ish diver­gence in the RSI, this fur­ther sup­ports the pos­si­bil­i­ty that a short-term break­down towards $0.60 could occur.

For Be[in]Crypto’s lat­est Bit­coin (BTC) analy­sis, click here

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published.