Fractal Analysis: This DeFi Altcoin Could Explode Incredibly!

As the crypto market continues to take heavy blows, the DeFi altcoin sector is on the rise. In particular, Polygon (MATIC) is preparing a ‘strong rally in 2023’ outlook, accompanied by the fractal on its chart.

DeFi altcoin market offers new opportunities after FTX bankruptcy

New analysis published by TradingShot experts draws attention to the similarity between the charts of Polygon and Ethereum. The MATIC price follows the pattern that Ethereum has done between October 2015 and January 2017 since the COVID crash in March 2020. As seen on the left, MATIC, which is halfway through the model, is on the verge of a significant break:

What are the similarities and what do they mean?

As analysts explain, “MATIC was rejected from the 50-day moving average last week. This mimics the behavior of Ethereum, which was rejected from the same region. Both rejected the 50 MA after the correction broke above the LH trendline. Also, the dollar played a large role in the exits of both cryptocurrencies on the observed timelines. TradingShot analysts summarize the pattern as follows:

What made a big difference in the January 2017 rise and rally for ETH was the bearish reversal in the US Dollar (DXY). MATIC made its bullish breakout in October 2022 as DXY retraced significantly.

According to analysts, if the fractal continues to repeat, we could see a strong rally in 2023.

The DeFi altcoin market is getting stronger, so what’s up with MATIC?

Currently Polygon’s technical analysis on 1-month indicators is in the “sell” zone at 9 instead of “buy” at 2 and “neutral” at 6. This summary is the result of oscillators in the “strong sell” at 8 and “bought” area of ​​the MAs at 2.

At the time of writing, MATIC price is trading down 2.8% from the last 24 hours. It has lost more than 10% since last week. Thanks to the momentum it gained towards the end of October, it reached the top 10. It then placed tenth after events around FTX. In the overall picture, both Polygon and Ethereum are keeping pace with market sentiment during the FTX-induced crisis. Despite double-digit losses, they manage to maintain their position.

Polygon news feed

As we quoted as Kriptokoin.com, Polygon announced its integration with the central crypto exchange Kraken on November 19. With this new development, users will be able to send and receive MATIC locally on the Polygon network.

Also, Polygon co-founder Sandeep Nailwal shared his views on the games on Twitter on November 19. “It’s good to see games coming back to Ethereum via Polygon,” he said. Specifically, Swords of Blood has announced that it will soon open in the Polygon ecosystem.

Finally, Polygon’s NFT ecosystem is also growing. In November, the total number of Opensea users on Polygon exceeded 1.45 million. This growth is also reflected in the graphics. Polygon’s total number of NFT transactions increased from last week along with the total NFT transaction volume in dollars.