Fractal Analysis: These 2 Altcoins Bought by Turks Can Do 2x!

Crypto analyst Yashu Gola says Polygon (MATIC) will gain 200% in Instagram and JPMorgan adoption. Also, according to the analyst, the Litecoin (LTC) pre-halving fractal indicates a 200% price rally by July 2023. We have compiled the analyst’s analysis of two altcoin projects in which Turks once invested heavily for our readers.

High profile partnerships from Polygon

In particular, Instagram parent company Meta has chosen Polygon as its primary 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.

In the midst of this, banking giant JPMorgan has taken a concrete step towards integrating cryptocurrencies into classical financial frameworks by using Polygon to execute its first live trade (worth approximately $71,000) on a public blockchain. MATIC rose more than 13% to $0.985 following the announcements. It has also seen an increase in daily process volume.

MATIC daily price chart / Source: TradingView

MATIC’s move to the upside came as a module 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 bullish 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 in the chart below) to reach its main upside goal of $2.89.

MATIC daily price chart with cup and handle pattern / Source: TradingView

As a rule of thumb of technical analysis, the purpose of a cup and handle pattern is measured after the gap between the bottom of the cup and the middle of the neckline is added to the potential breaking point. 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. Here, the number of active wallets reached a record 6 million, primarily with the launch of Reddit’s NFT marketplace on Blockchain.

Polygon NFTs had strongest 3rd quarter performance in 2022 / Source: Messari

On the other hand, macro risks continue to threaten the continued crypto market recovery that could hurt Polygon despite growing subsidiaries 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 hit bottom?

The altcoin has gone through two halvings since its launch in October 2011. The first took place 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. In a different way, every Litecoin halvng event occurred after a volatile LTC price cycle, i.e. a massive price pump. Subsequently, there was a large correction, a price floor and a local climax recovery.

After the Litecoin halving, the price of LTC corrected from its local high. Then he created another base. He pushed it to a new record high with another big price rally as shown below.

LTC weekly price chart with halving fractals / Source: TheScalpingPro

Litecoin’s third halving will take place in July 2023. In the middle, 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 set the oversold and overbought conditions of an asset to assume potential trend reversals. In a weekly timeframe, LTC’s RSI and MACD turned into many sells, which coincided with the market floors prior to the 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 hits the bottom around $40 in June 2022, it is possible to see a new local top. Drawing Fibonacci retracement charts amid Litecoin’s pre-halving retracement peaks and bottoms highlights the possibility of testing the 0.236 and 0.382 Fib lines as upside targets.

LTC weekly price chart with fib line targets / Source: TradingView

For example, in 2011, the altcoin hit the bottom around $1.31. Six months after that, it established its local top at the 0.236 Fib line near $10 in July.

LTC weekly price chart showing the trend before the 1st halving / Source: TradingView

In 2019, LTC price jumped from around $21 in December 2018. It then formed the local top in June at the 0.382 Fib line near $340.

LTC/USD weekly price chart showing the trend before the 2nd halving / Source: TradingView

In the current scenario, Litecoin’s 0.236 and 0.382 Fib lines coincide with around $130 and $180, respectively.

LTC/USD weekly price chart showing the trend before the 3rd halving / Source: TradingView

If Litecoin confirms $40 as the base, these levels are likely to become potential local highs. In other words, it means a 100%-200% price increase by July 2023 when measured from current price levels.

Similar Articles

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Advertisment

Most Popular