Polygon (MATIC) prices are up today, reflecting a rally elsewhere in the cryptocurrency market as traders assess a range of fundamental factors.

On July 11, the price of MATIC rose 2.32% to $0.75, its highest level in a month, outperforming the cryptocurrency market, whose valuation remained relatively unchanged from the previous day at about 1.14 trillion Dollar.

MATIC/USD daily price chart with cryptocurrency market capitalization. Source: TradingView

New CEO, Polygon’s ‘Decentralized Governance’ Initiative

MATIC’s intraday gains were part of a broader price increase that began after Polygon named its former chief legal officer Marc Boiron as its new chief executive on July 7. Since then, MATIC/USD has gained nearly 15%.

MATIC/USD four-hour price chart. Source: TradingView

Boiron’s appointment comes more than a month after the SEC argued that MATIC was a “security” in its lawsuit against Binance and Coinbase.

Prices have also risen, meanwhile, as Polygon prepares to implement a series of network upgrades as part of its “Polygon 2.0” overhaul. That is, establish a “decentralized governance” protocol by July 17th.

MATIC WHALE GET BIGGER

The price of MATIC rose on July 11, continuing a period of strong accumulation by whales.

For example, the MATIC supply held by entities with balances between 10 million and 100 million tokens has increased by more than 1% so far in July.

Whale supply distribution. Source: Santiment

At the same time, the supply held by the 1-10 million MATIC group has also declined. In other words, some whales in the 1-10 million MATIC queue accumulated tokens in July and became part of the 10-100 million MATIC queue.

MATIC Outlook for July

From a technical standpoint, MATIC appears poised to experience a significant price drop in July.

As of July 11, Polygon token was testing a resistance confluence consisting of the 50-day exponential moving average (50-day EMA; red wave), a support-turned-resistance horizontal trendline, and an ascending trendline forming a potential bear flag pattern.

MATIC/USD daily price chart. Source: TradingView

A pullback from the confluence of resistance could lead to a fall towards the lower trendline of the flag in July, near $0.68, a decline of about 10% from current price levels.

RELATED: Polygon 2.0 Introduces Upgrade to Leverage Internet’s ‘Value Layer’

Additionally, a close below the lower trendline will increase the likelihood of triggering a bear flag breakdown scenario. This implies a downside target for July of around $0.50, a drop of nearly 30% from current price levels.

On the other hand, a decisive close above the trendline above the flag could dampen MATIC’s bearish outlook, allowing it to rise further towards the 200-day SMA near $0.90 (blue wave). In other words, it will be up 20% by July.

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This article does not contain investment advice or recommendations. Every investment and transaction involves risk, and readers should do their own research when making a decision.