Polygon rallies 22% on Disney invitation euphoria — will MATIC price gains swell in July?

4e23c2a7 f38e 4046 a2f8 1e1af611fe30

Polygon (MATIC) reached lofty price levels this July 14, a day after getting selected for the Walt Disney Company’s benchmark business development program.

MATIC’s price surged 22.5% to $0.657 a token, its highest level in a month. In doing so, the token also climbed above its 50-day exponential moving average (50-day EMA; the red wave), a curvy resistance level that had been capping MATIC’s upside attempts since January 2022.

MATIC/USD daily price chart. Source: TradingView

Polygon enters the Disney World

MATIC’s move upside appeared synchronous with similar intraday recovery actions witnessed elsewhere in the crypto market.

Nonetheless, Polygon fared better than most of its top-ranking rivals, including the cryptocurrencies Bitcoin (BTC) and Ether (ETH).

And at the core of MATIC’s better performance could be the Walt Disney Company.

The multinational mass media and entertainment conglomerate announced six companies that would join its 2022 Disney Accelerator to build augmented reality (AR), nonfungible tokens (NFTs), and artificial intelligence (AI) solutions.

Polygon made it to Walt Disney’s list, thus becoming the only blockchain platform to have done so ever. As a result, MATIC, Polygon’s native utility and staking token, rallied better than most of its rival digital assets.

Key MATIC R/S flip ahead

Polygon now tests a resistance confluence, defined by a support-turned-resistance range of $0.61-0.67 and a Fibonacci retracement line near $0.63, for a potential breakout in July.

87292fa3 b690 44a7 92ef b94dce7aca6f
MATIC/USD three-day price chart. Source: TradingView

A decisive move above the confluence could have MATIC pursue a run-up toward the 0.618 Fib line near $1.11, providing the token also closes above its 50-3D (red) and 200-3D (blue) EMAs. That would mean almost an 80% jump from today’s price level.

Conversely, a pullback from the confluence would risk crashing MATIC toward the $0.29-$0.35 area, similar to how it retraced downward in June.

Related: 3 key metrics suggest Bitcoin and the wider crypto market have further to fall

MATIC could also erase its recent gains due to higher inflation. Notably, the crypto markets like their traditional finance counterparts have responded negatively to a persistently rising U.S. consumer price index.

1ae8615a b7d1 49a1 8a96 00d0ac928172
MATIC/USD and NASDAQ weekly correlation coefficient. Source: TradingView

On July 13, the latest inflation data reached its four-decade high of 9.1%. As a result, investors anticipate the Federal Reserve would raise benchmark rates by a full percentage point, with Atlanta Fed President Raphael Bostic saying that the option “is in play.”

A 1% rate hike in July would risk putting downward pressure on the entire crypto market, including Polygon.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.