Polygon’s (MATIC) price has experienced an increase today, following the positive movement seen across the broader cryptocurrency market. Traders are currently evaluating a combination of fundamental factors to assess the reasons behind this price surge. On July 11, the price of MATIC rose by 2.32% to reach $0.75, marking its highest level in a month. Notably, MATIC outperformed the overall crypto market, which maintained a relatively stable valuation of around $1.14 trillion during this period.
The recent appointment of Marc Boiron as the new CEO of Polygon has contributed to the ongoing price jump in MATIC. Boiron, who previously served as the company’s chief legal officer, took over the leadership role on July 7. Since his appointment, the MATIC/USD pair has seen a gain of nearly 15%. Boiron’s arrival as CEO coincides with the United States Securities and Exchange Commission (SEC) arguing that MATIC is a “security” in its legal battles against major exchanges Binance and Coinbase. Additionally, Polygon is currently preparing to implement a series of network upgrades as part of its “Polygon 2.0” revamp, including the introduction of a “decentralized governance” protocol by July 17.
The recent price rally of MATIC on July 11 follows a period of significant accumulation by whales. Data shows that entities holding MATIC tokens between 10 million and 100 million saw their supply increase by more than 1% so far in July. This corresponds with a decrease in the supply held by the 1 million to 10 million MATIC cohort. In other words, whales from the latter group accumulated tokens in July and joined the 10 million to 100 million MATIC cohort.
Looking at MATIC’s July outlook from a technical perspective, the token appears to be poised for sharp price declines. As of July 11, MATIC was testing a resistance confluence formed by its 50-day exponential moving average (EMA), a support turned resistance horizontal trendline, and an ascending trendline, which together suggest a potential bear flag pattern. If a pullback occurs from this resistance confluence, the price could potentially drop to the flag’s lower trendline near $0.68, representing a decline of approximately 10% from current levels. A close below the lower trendline would further increase the likelihood of a bear flag breakdown, which could drive the price down to around $0.50 in July, a decrease of nearly 30% from its current level. On the other hand, if MATIC manages to achieve a decisive close above the flag’s upper trendline, it could weaken the bearish prospects and potentially trigger an extended rally towards the 200-day EMA near $0.90, indicating a 20% increase by July.
In conclusion, the surge in Polygon’s MATIC price can be attributed to various factors, including the appointment of a new CEO, ongoing legal disputes with regulatory bodies, and the upcoming network upgrades. However, in terms of technical analysis, MATIC faces potential downward pressure, with a possible decline to $0.68 or even $0.50 in July. Nonetheless, a breakout above the resistance confluence could lead to a bullish scenario with a target price of $0.90. As always, it is essential for investors to conduct their own research and exercise caution when making investment decisions.
Note: This article does not provide investment advice or recommendations and emphasizes the importance of readers conducting their own research and due diligence.