Polygon’s (MATIC) price is up today, mirroring upside moves elsewhere in the cryptocurrency market as traders assess a mix of fundamental factors.On July 11, MATIC’s price rose 2.32% to $0.75, its highest level in a month — outperforming the crypto market, whose valuation stayed relatively unchanged from the previous day at around $1.14 trillion.MATIC/USD daily price chart versus crypto market capitalization. Source: TradingViewNew CEO, Polygon’s “decentralized governance” plansMATIC’s intraday gains come as a part of a broader price jump that started after Polygon appointed its former chief legal office, Marc Boiron, as the new CEO on July 7. Since then, MATIC/USD has gained nearly 15%.MATIC/USD four-hour price chart. Source: TradingViewBoiron’s appointment comes more than a month after the United States Securities and Exchange Commission argued that MATIC is a “security” in its lawsuits against Binance and Coinbase. Meanwhile, the price gains also appear as Polygon prepares to implement a sequence of network upgrades as a part of its “Polygon 2.0” overhaul. Namely, the establishment of a “decentralized governance” protocol by July 17.MATIC whales get biggerMATIC’s price rally on July 11 succeeds a period of strong whale accumulation.For instance, the supply of MATIC held by entities with a balance between 10 million and 100 million tokens has increased by more than 1% in July so far.Whale supply distribution. Source: SantimentThat coincides with a drop in the supply held by the 1 million–10 million MATIC cohort. In other words, some whales from the 1 million–10 million MATIC cohort accumulated tokens in July and became part of the 10 million–100 million MATIC cohort.MATIC’s July outlookFrom a technical perspective, MATIC looks prepared to undergo sharp price declines in July.As of July 11, the Polygon token was testing a resistance confluence comprising its 50-day exponential moving average (50-day EMA; the red wave), a support turned resistance horizontal trendline, and an ascending trendline constituting a potential bear flag pattern.MATIC/USD daily price chart. Source: TradingViewA pullback from the resistance confluence risks sending the price toward the flag’s lower trendline near $0.68 in July, down about 10% from current price levels. Related: Polygon 2.0 introduces upgrades to tap into ‘Value Layer’ of internetMoreover, a close below the lower trendline will increase the potential of triggering a bear flag breakdown scenario. This means a downside target of around $0.50 in July, down nearly 30% from current price levels.On the other hand, a decisive close above the flag’s upper trendline could weaken MATIC’s bearish prospects, enabling an extended run-up toward the 200-day EMA (the blue wave) near $0.90. In other words, a 20% rally by July.Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
