Crypto analyst Yashu Gola says Polygon (MATIC) will see 200% gains in Instagram and JPMorgan adoption. Also, Litecoin (LTC) pre-halving fractal marks a 200% price rally by July 2023. We have compiled for our readers the analyst’s analysis of two altcoin projects in which Turks once invested heavily.
High profile partnerships from Polygon
Specifically, Instagram’s parent company Meta has chosen Polygon as its first partner for its upcoming token (NFT) tools that allow users to print, display and sell their digital collections on and off the social media platform.
Meanwhile, banking giant JPMorgan has taken a tangible step towards integrating cryptocurrencies into traditional financial frameworks by using Polygon to execute its first live trade (worth around $71,000) on a public blockchain. MATIC rose over 13% to $0.985 after the announcements. It has also seen an increase in daily trading volume.
MATIC’s upward move came as part of a broader recovery rally across crypto. The altcoin has the potential to rise more than 200% with a trend that will likely continue in the coming months.
Altcoin price approaches cup and handle breakout
The first clue for MATIC’s ascension continuation comes from a classic technical setup. On the daily chart, the altcoin has drawn a cup and handle pattern with a U-shaped recovery followed by a downward drifting channel. The altcoin is now following a decisive break above the neckline range of the formation (red bar on the chart below) to reach its main upside target of $2.89.
As a rule of thumb of technical analysis, the target of a cup and handle pattern is measured after adding the distance between the bottom of the cup and the neckline to the potential breakout. As a result, MATIC now expects a 200% price rally by the end of the first quarter of 2023.
In essence, demand for MATIC may continue to grow, given Polygon’s growing NFT projects initiated by mainstream companies. For example, Polygon’s list of leading NFT partners includes names like Disney, Robinhood and Starbucks. Also, Polygon had a strong 3rd quarter. The number of active wallets here has reached a record 6 million, primarily with the launch of Reddit’s NFT marketplace on Blockchain.
On the other hand, macro risks continue to threaten the continued crypto market recovery that could hurt Polygon despite its growing partnerships with major brands. However, it is possible that a strong pullback from the cup-and-handle pattern neckline range will completely invalidate the bullish setup.
Has Litecoin bottomed out?
The altcoin has gone through two halvings since its launch in October 2011. The first one happened in August 2015 and reduced the block reward from 50 LTC to 25 LTC. The second took place in August 2019, which reduced 25 LTC rewards to 12.5 LTC. Interestingly, every Litecoin halvng event occurred after a volatile LTC price cycle, i.e. an enormous price pump. A similarly large correction followed, a price bottom and a recovery to a local top.
After the Litecoin halving, the price of LTC corrected from its local top. Then it created another bottom. It has pushed it to a new record high with another massive price rally as shown below.
Litecoin’s third halving will take place in July 2023. Meanwhile, market analysts are already pointing out that the price of LTC has passed the pre-halving trajectory before the events of 2011 and 2019 and is currently in the bottoming phase.
Scalping Pro, an independent market analyst, added a dose of MACD and RSI momentum indicators to support the bullish outlook. Momentum indicators identify oversold and overbought conditions for an asset to predict potential trend reversals. On a weekly timeframe, LTC’s RSI and MACD turned into oversold, which coincided with market bottoms prior to previous halving events. Therefore, the analyst says that this is a strong sign for another major LTC price rally.
Will altcoin price reach $180 by July 2023?
If Litecoin really bottomed around $40 in June 2022, a new local high is possible. Drawing Fibonacci retracement charts between Litecoin’s pre-halving retracement highs and lows highlights the possibility of testing the 0.236 and 0.382 Fib lines as upside targets.
For example, in 2011, the altcoin bottomed around $1.31. Six months after that, it established its local top at the 0.236 Fib line near $10 in July.
In 2019, LTC price jumped from around $21 in December 2018. It then formed its local top in June at the 0.382 Fib line near $340.
In the current scenario, Litecoin’s 0.236 and 0.382 Fib lines coincide with around $130 and $180, respectively.
If Litecoin confirms the bottom at $40, these levels are likely to become potential local tops. In other words, it means a 100%-200% price increase by July 2023 when measured from current price levels.
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