Polygon MATIC surges, Bullish Forecasts Reinforced

Polygon MATIC has surged higher over the past 24-48 hours, whilst most other cryptocurrencies have consolidated recent gains, highlighting an even more positive bottoming and recovery phase. From a technical analysis presentive, this points to still higher price prospects, though we also address downside risks and trigger levels.

Polygon MATIC Surge

Polygon MATIC is up nearly 50% for 2023 already and surged by 20% over the past 48 hours. Although the January advance has been echoed across the broader cryptocurrency markets, the surge from Thursday has highlighted a still more bullish theme for the Ethereum scaling tool, Polygon’s MATIC token. Furthermore, this activity and activity since November has been fuelled by spikes in both daily active users and daily transactions, (consistent with data from Token Terminal). This has been assisted by Polygon announcing partnerships with the likes of Instagram and Starbucks.

Polygon MATIC Enhances Base with Higher Price Forecasts and Targets

A surge higher by up to 20% since Wednesday’s lows by Polygon MATIC/ USD has seen a push through the consolidation peaks set from mid-January and re-energised the bull theme from the start of 2023 swing low at 0.7472, up as high as 1.1278 on Thursday. This positive price action has built on the mid-January rally through notable swing resistance at 0.9500, to reinforce and enhance a stronger intermediate-term basing pattern and leave the risks into February and the first quarter still higher.

The February threat is to challenge targets at 1.1574 and 1.3042. Further into Q1 we could see a still better recovery phase to aim at 1.5053, 1.7498 and even towards 2.0977.

Polygon MATIC Downside Risks

Below 0.9865 would question the very immediate upside risks. Only below 0.9164 would damage the short-term basing theme. This could then open the door to a test back down towards 0.7472.