Polygon rises 33% 📈 Cryptocurrencies extend massive rebound

Polygon, which recently announced a deal with Meta Platforms, rallied nearly 32% as a drop in US CPI inflation weakened the US dollar and boosted sentiment around risk assets:

  • Polygon is a project closely related to the Ethereum blockchain. Despite major market declines, the cryptocurrency has defended key price levels and continues to trade nearly twice as high since June lows. The relatively positive sentiment against the industry that Polygon’s market has experienced during the recession could be a positive harbinger 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 applications from Meta Paltforms looks optimistic. Meta owns Instagram, Facebook and What’s App, so it has a multi-billion user base that could 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 on Meta applias has just started and it is still unclear how it will be received by the market and consumers.

The polygon bounced off a key support area near 0.7580, which coincides with previous price reactions, the 200 SMA (red line) and a bullish wave. Buyers have managed to erase most of the recent losses and are approaching resistance at 1.12, which coincides with the 61.8% Fibonacci retracement of the bullish wave that started in early 2021. As long as the price is below this level, the main sentiment remains bearish and another bearish impulse may be triggered. Source: xStation5

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