Polygon (MATIC) pumps 20% after Disney collaboration announcement – will the rally last?

Key Takeaways:

  • MATIC value charges 20% in 24 hours.
  • The rally is unlikely to last, given the bearish technicals
  • Disney Accelerator deal triggered the rally.
Polygon, Polygon (MATIC) pumps 20% after Disney collaboration announcement – will the rally last?
image from medium.com

YEREVAN (CoinChapter.com) – Polygon (MATIC) jumped over 20% in the previous 24 hours after four days of decline. However, after reaching $0.65 in the Asian-Pacific session on July 14, the rally halted, settling at $0.63 hours later.

Meanwhile, the two-hour chart hinted at a looming reversal and painted a Rising Wedge.

MATIC bearish technicals

Typically, the Rising Wedge occurs when the price action fluctuates between two converging trendlines, elevating the value slightly while lowering the swing. However, Rising Wedge is a reversal setup. Thus, it forecasts a bearish vector once the digital asset breaks below the support line.

Polygon (MATIC) two-hour chart, featuring a rising wedge. Source: TradingView.com
Polygon (MATIC) two-hour chart featuring a rising wedge. Source: TradingView.com

Admittedly, MATIC has not confirmed the formation yet. But the digital asset retested the resistance hours after the rally, heading towards the lower trendline.

Should the bearish sentiment hold, the Polygon token’s plunge could equal the maximal distance between the Wedge’s trendlines. Thus, the formation’s target price would be $0.25, a 60% slash from the current value.

Reversal ahead for Polygon?

Additionally, the chart above shows a lowering in trading volumes, which supports the reversal theory, exhibiting growing passivity among traders.

The latest uptrend was partially triggered by Bitcoin’s 6% bullish move in the same timeframe.

However, the macroeconomic cards are stacked against the flagship crypto, at least in the short term. The growing inflation, Fed’s aggressively hawkish policy, and geopolitical uncertainty dampen Bitcoin’s chances of gains in Q3.

A solo altcoin rally amid ubiquitous declines is unlikely. However, the circumstances of Polygon’s latest upside move are noteworthy.

Polygon partners with Disney

Entertainment giant Disney announced the 2022 Accelerator participants on July 13. In detail, the Disney Accelerator is a development program designed to accelerate the growth of innovative companies.

In 2022 the project plans to focus on building “the future of immersive experiences.” Thus, the Accelerator chose companies that specialize in technologies such as augmented reality (AR), non-fungible tokens (NFTs), and artificial intelligence (AI) characters.

Bonnie Rosen, General Manager of the Disney Accelerator program, commented on the selection, asserting that the entertainment titan has been at the forefront of leveraging technology for the future.

“The Disney Accelerator is thrilled to be part of that legacy, and with our newest class of companies, we look forward to furthering our commitment to innovation and continuing to bring magical experiences to Disney audiences and guests for the next 100 years.”

added the executive.

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