The MATIC price jumped 22.5% to $0.657. Accordingly, the token also climbed above the 50-day exponential moving average (50-day EMA, red wave). This curved resistance level has restrained MATIC’s attempt to rally since January 2022.
Entering Disney World
The MATIC rally seems to be in sync with the crypto market recovery. However, when looking at its performance, Polygon is outperforming most of the top competitors, including BTC and ETH.
Perhaps the main reason driving MATIC this time is the collaboration with Walt Disney.
The multinational entertainment and media conglomerate has announced six companies will join Disney Accelerator in 2022 to build augmented reality (AR), NFTs, and artificial intelligence (AI) solutions.
Polygon is the only blockchain platform on the list. Therefore, the price of its native staking and utility token, MATIC, has outperformed most rival digital assets.
About to Flip Key Resistance
MATIC is currently testing a resistance confluence, defined by a range that was previously supported at $0.61–0.67 and a Fibonacci retracement line near $0.63, looking for a potential breakout in July.
A decisive move above the confluence can push MATIC towards the 0.618 Fib line near $1.11, provided the token closes above the 50-3D (red) and the 200-3D (green) EMAs, which means the price is almost 80% up from the level of June 14th.
In contrast, a pullback from the confluence would risk taking MATIC towards the $0.29–0.35 zone, similar to the June downward move.
MATIC could also lose recent gains due to higher inflation. Notably, like the traditional financial markets, the crypto market reacts negatively to the continuously rising U.S. consumer price index.
On July 13, the latest inflation data shows a four-decade peak of 9.1%. As a result, investors expect the US Federal Reserve (Fed) to raise its benchmark interest rate by 1%. At the same time, Atlanta Fed President Raphael Bostic said that the offer “is in play.”
A 1% interest rate hike in July would add further downward pressure on the entire crypto market, including Polygon.
Disclaimer: This article is for reference purposes only, not investment advice.
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