Cryptocurrency Polygon, which recently reported a deal with Meta Platforms, is rebounding nearly 32% after a lower US CPI inflation reading weakened the US dollar and fueled sentiment around risky assets:
- Polygon is a project closely tied to the Ethereum blockchain. Despite broad market declines, the cryptocurrency has defended key price levels and is still trading nearly twice as high since its June lows. The relatively positive sentiment against the industry that Polygon's market has been experiencing during the downturn could be a positive harbinger for the future of the project, which recently overtook Solane and found itself in the top 10 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 user base of several billion users that could potentially drive future Polygon adoption. However, it is still too early to trumpet strategic success. At this point, the option to trade and create NFT tokens in Meta's aplias is really just beginning, and it is still unclear how it will be received by the market and consumers.
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Polygon bounced off a major support zone near 0.7580, which coincides with previous price reactions, the 200 SMA (red line) and an upward 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 upward wave initiated in early 2021. As long as the price is below this level, the main sentiment remains bearish and another downward impulse may be triggered. Source: xStation5
