MATIC can go up 200% thanks to the collaboration with Meta and JP Morgan

Key points:

• MATIC was the best-performing asset among the top cryptocurrencies on Nov. 3, as the market’s attention turned to Instagram and JPMorgan’s latest announcements.
• On the daily chart, MATIC plots a cup and handle setup that includes a U-shaped recovery followed by a downward drifting channel. As such, MATIC is now targeting a 200% price increase by the end of the first quarter of 2023.
• On the other hand, macro risks continue to threaten the ongoing crypto market recovery, which could hurt Polygon despite its growing partnerships with established brands.

Polygon's list of high-profile partners continues to grow as Disney, Starbucks, and Robinhood have entered the blockchain.

MATIC was the best-performing asset among the top cryptocurrencies on Nov. 3, as the market’s attention turned to Instagram and JPMorgan’s latest announcements.

Polygon in a high-profile partnership

Notably, Meta, the parent company of Instagram, named Polygon as the first partner for its upcoming non-fungible token (NFT) tool that will allow users to mint, display, and sell their tokens on and off the social media platform Digital collectibles.

Meanwhile, banking giant JPMorgan Chase used Polygon to conduct its first live transaction (worth around $71,000) on a public blockchain, marking a concrete step toward integrating cryptocurrencies into traditional financial frameworks.

MATIC, the utility, and staking token in the Polygon blockchain ecosystem surged more than 13% to $0.985 following the announcement, along with an increase in daily transaction volume.

MATIC's move higher is part of a broader recovery rally across the cryptocurrency industry that began in mid-June. The price of MATIC has risen by more than 200%, and this trend is likely to continue in the coming months.

MATIC price nears breakout of cup-and-handle

The first hint of a bullish continuation of MATIC comes from the classic technical setup.

On the daily chart, MATIC plots a cup and handle setup that includes a U-shaped recovery followed by a downward drifting channel. The coin is now eyeing a key break above the pattern’s neckline (red bar in the chart below) to reach its main upside target of $2.89.

As a rule of technical analysis, the goal of the cup-and-handle pattern is measured after adding the distance between the bottom of the cup and the neckline to the potential breakout point. As such, MATIC is now targeting a 200% price increase by the end of the first quarter of 2023.

In principle, demand for MATIC is likely to continue to grow given the increasing number of NFT projects from Polygon launched by mainstream companies.

Polygon's list of notable NFT partners includes names like Disney, Robinhood, and Starbucks. Additionally, Polygon had a strong third quarter with a record 6 million active wallets, largely thanks to Reddit’s NFT marketplace launch on its blockchain.

On the other hand, macro risks continue to threaten the ongoing crypto market recovery, which could hurt Polygon despite its growing partnerships with established brands. Having said that, a strong pullback from the neck area of ​​the cup and handle pattern could invalidate the overall bullish setup.