The crypto market is bullish and recouping some of its gains from the past week with Polygon (MATIC) and other altcoins following the overall trend. Digital assets appear to be reacting positively to legacy company earnings reports.
Related Reading | Why the IMF Thinks the Crypto Market Could See “Further Selling”
At the time of writing, Amazon (AMZN) has exceeded earnings expectations, generating over $130 billion in net sales. Apple (AAPL) also beat expectations with $83 billion in profit.
Amazon +10% 👀 pic.twitter.com/T4twX73AKG
— TradingView (@tradingview) July 28, 2022
As a result, the S&P 500 was up 1.23% at the US close, with the Nasdaq and Dow Jones trading in the green. The crypto market has benefited from these reports as it continues to move in tandem with traditional financial markets.
Top crypto analyst Michaël van de Poppe celebrated the positive price movements of AMZN and AAPL. The analyst believes that the evolution of stock prices will continue to ripple through the crypto market. Via Twitter, van de Poppe said:
we are definitely ready for the fireworks (…). The whole market seems ready to continue to move strongly. Many altcoins and Bitcoin breaking above the 50-day moving average. Bitcoin breaks above the 200-week moving average. I seem to see a continuation on these altcoins for 100-200%.
The analyst singled out Solana (SOL), Polygon (MATIC), Cosmos (ATOM), Avalanche (AVAX) and others with the best potential to benefit from a long-term uptrend. These cryptocurrencies have the potential to post 60x returns “in the next bull cycle,” van de Poppe said.
In the short term, as mentioned above, these altcoins could register up to 100% to 200% gains if the bullish momentum continues. The analyst says most of these altcoins have broken above key moving averages and may find little resistance as they reclaim previously lost territory.
According to this analyst, Avalanche (AVAX) could reach a target of $37-41 on its own. Solana, on the other hand, could reach $62-$84 and Polygon beyond the $1 mark.
Can Polygon (MATIC) benefit from a crypto summer rally?
The analyst says the crypto market should get a relief rally on the back of a dovish US Federal Reserve (Fed). The financial institution has attempted to dampen inflation by raising interest rates and, according to market expectations, this measure is likely to decline in its July print.
Additionally, the Ethereum “merger” was scheduled for September 2022. This event is considered very bullish for the cryptocurrency which provided ETH bulls with enough strength to push the market higher.
Related Reading | Bitcoin Makes Surprise Rise as Fed Discloses 0.75 Bp Rate Hike
Polygon (MATIC), Avalanche (AVAX), Solana (SOL) and Cosmos (ATOM) could prove to be good long-term bets due to upcoming products, their partnerships with major players in and outside the crypto industry and their development teams. .
The ideal ingredients for a Summer Relief Rally are here:
▫️ Powell becomes dovish on politics and more dependent on data.
▫️ $ETH upcoming merger in September.
▫️ Significant impact on 3AC, Celsius and more already taken into account.I watch $ETH at $2,400 and $BTC at $28,000-30,000.
— Michael van de Poppe (@CryptoMichNL) July 27, 2022