After the intraday advance led by Disney, MATIC is still awaiting a significant breakthrough, with the profit objective roughly 80% higher than current prices.
The stock price of Polygon (MATIC) soared on July 14, a day after the company was selected for the Walt Disney Company’s benchmark business development program.
The MATIC price increased by 22.5% to $0.657 per token, its highest level in a month. In doing so, the token also surpassed its 50-day exponential moving average (50-day EMA; the red wave), a sloping resistance level that has capped MATIC’s gains since January 2022.
The polygon enters Disney World
MATIC’s upward movement appeared synchronised with intraday recovery actions observed elsewhere in the cryptocurrency market.
Nevertheless, Polygon performed better than the majority of its leading competitors, including Bitcoin (BTC) and Ether (ETH).
The Walt Disney Company could be at the heart of MATIC’s improved performance.
Six businesses will join the 2022 Disney Accelerator to develop augmented reality (AR), nonfungible tokens (NFTs), and artificial intelligence (AI) solutions, as announced by the worldwide mass media and entertainment corporation.
Polygon made Walt Disney’s list, becoming the first and only blockchain platform to do so. Consequently, MATIC, Polygon’s native utility and staking token, appreciated more than the majority of its competing digital assets.
HUGE for $MATIC
Every day feels like another prominent Web 2 platform embracing what’s coming, and Polygon is always involved, especially when it comes to NFTs. Excited to see what they cook up 🥘 https://t.co/MDNBkivZDd
— N03LVentures (@N03LVentures) July 13, 2022
Key MATIC R/S forward flip
For a possible breakout in July, Polygon is currently testing a resistance confluence formed by a support-turned-resistance range of $0.61-0.67 and a Fibonacci retracement line near $0.63.
A decisive move above the confluence could propel MATIC toward the 0.618 Fib line near $1.11, assuming the token also closes above its 50-3D (red) and 200-3D (blue) exponential moving averages. That would represent a nearly 80 percent increase from the current price level.
#MATIC IS READY FOR A +80% PUMP.
— TAnalyst (@AurelienOhayon) July 14, 2022
In contrast, a pullback from the confluence would risk MATIC plunging to the $0.29-$0.35 region, similar to how it retraced lower in June.
Due to rising inflation, MATIC may also lose its recent gains. Notably, the crypto markets have responded negatively to a continually rising U.S. consumer price index, similar to their traditional financial counterparts.
The latest inflation data reached its highest level in four decades on July 13. Consequently, investors predict that the Federal Reserve would raise benchmark interest rates by a full percentage point, with Atlanta Fed President Raphael Bostic stating that the possibility “remains on the table.”
A one-percentage-point rate increase in July might put negative pressure on the whole cryptocurrency market, including Polygon.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.