MATIC has painted a bull flag setup with a profit target sitting nearly 100% higher than its current price.
The price of Polygon’s MATIC (MATIC) coin could double by the end of 2022 or early 2023 due to a mix of extremely bullish fundamental and technical indicators.
Polygon wins high-profile clients
MATIC rose by nearly 6.5% four days after Nubank, a Brazilian fintech company backed by Warren Buffett’s Berkshire Hathaway and Softbank, confirmed that it selected Polygon’s “Supernets technology” for its blockchain and digital token, dubbed Nucoin.
“Nubank plans to airdrop the digital token to its customers in the first half of 2023,” the official announcement read, adding:
“These tokens will serve as the basis for its customers loyalty rewards program and will have benefits such as discounts and other advantages.”
#Polygon is taking @Nubank from #Web2 ➡️ #Web3!
In a strategic partnership with Polygon, Nubank is launching its own chain using #PolygonSupernets & thus its digital token Nucoin #onPolygon
This move will open the gateway for 70 mn+ Nubank users to the #Web3 space pic.twitter.com/Fu06Vi7IpV
— Polygon – MATIC (@0xPolygon) October 19, 2022
As a result of the rally, MATIC was changing hands for $0.90 on Oct. 24, its highest level in three weeks.
Polygon Supernets is an enterprise-level solution that removes the complexity of blockchain development for companies looking to build their native chains. Interestingly, before Nubank, gaming company GameSwift employed the product to launch its custom blockchain.
The growing demand for Polygon products may bring a similar boom for its native token, MATIC, which serves as a utility and staking asset within the Polygon blockchain ecosystem.
MATIC eyes bull flag breakout
The Nubank news surfaces as MATIC paints what appears to be a bullish continuation pattern on its lower-timeframe chart.
Dubbed a “bull flag,” the pattern emerges when the price consolidates inside a parallel, descending channel after a strong move upward. As a rule, it resolves after the price breaks out of the range to the upside and rises by as much as the previous uptrend’s height.
Therefore, MATIC’s breakout above the flag’s upper trendline could have it test $1.85 as its primary upside target. In other words, it could see a 100% price rally by the end of 2022 or at the beginning of 2023.
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Conversely, a pullback from the flag’s upper trendline could lead MATIC toward the lower trendline near $0.67.
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