Polygon crypto has witnessed significant whale activity, with over 59 million POL tokens bought in just 48 hours, showing rising confidence in the network.
With TVL recovering above $1B, this bullish momentum is setting the stage for potential growth in the coming months.
As per Ali Charts, Polygon whales have stashed over 59 million POL tokens in the last 48 hours. This surge in whale activity highlights confidence in the Polygon network.
Accumulation on the chart has also gone up, coinciding with the price increase of POL during the same period.
This correlation suggests that large investors are providing a lot of buy pressure, consequently, driving the token’s bull run.
Such large purchases typically indicate bullish sentiment and are sometimes the catalyst for broader market participation.
This shows strong institutional interest, which is likely to considerably drive up POL’s price movement over the next few days.
Polygon’s TVL Climbs Above $1B Following August Rebound
The chart shows that the Total Value Locked on the Polygon crypto ecosystem fell dramatically at the end of 2023.
It began 2023 well above $1.5 Billion and fell below $1 Billion by the year-end, reflecting a rapid deflation of network activity and liquidity.
But that turned to a rebound starting in August 2024, indicating renewed interest in and capital flow into the Polygon ecosystem.
Notably, TVL has remained consistently above the $1 Billion mark by late 2024, and with activity spikes, perhaps coinciding with the network scale initiatives, partnerships, and the migration of projects to Layer 2.
POL TVL | Source: DefiLlama
Polygon’s bounce back speaks volumes about the project’s ability to snap back from a tough time.
The patchy upward trajectory from August suggests users are increasingly comfortable with the ecosystem, and, likewise with the long-worked path into sustained growth in the months ahead.
Polygon Crypto Price Analysis
Polygon crypto is consolidating in a tight range across $0.54 and $0.56 as traders decide whether to break out.
In fact, the Alligator indicator confirms this consolidation as its lines twist and indicate there is a lack of directional momentum.
After a prior bullish move, the price is either in a distribution phase or getting ready for another leg up or down.
The weakening bullish momentum is now showing on the MACD indicator because the MACD line is a little above the signal line but without much strength.
If the MACD crosses downward, it could be a bearish signal and a potential drop below the consolidation zone. Conversely, renewed bullish momentum above the signal line could be a breakout to higher levels.
POLUSD 4-hour chart | Source: Trading View
The key level to look for on the upside is $0.56. $0.56 could be the gateway to a bullish breakout with targets of up to $0.60 and $0.65, subject to prior resistance zones.
However, the downside is that should it break down below $0.54, $0.52 and $0.50 can then be seen as stronger support levels to rebound off. An emerging trend direction is confirmed through an ADX above 25.
POL Funding Rate Stays Positive, Reflecting Bullish Market Sentiment
The overall market sentiment is bullish, with a mostly positive funding rate. This means the long positions have dominated the market.
This is a bullish indicator. Traders are all willing to buy at the premium, as they do not want to be liquidated.
Prices increased around November 12 and November 18, and there were significant spikes in funding rates around then.
The spikes tell us that the leverage in the market is at its greatest. Price movement could increasingly be amplified.
POL OI-Weighted Funding Rate | Source: Coinglass
But that normalization became quite brief. Each spike was also followed by a recovery and tightening of funding rates. This signaled a return to more balanced market conditions, dampening speculation.
The price action and funding rate relationship shows that positivity in the funding rate is correlated with continuing upward price momentum.
But traders should watch for extreme spike periods, as that is usually a sign of a correction when the leverage unwinds. Bearish reversion to negative funding rates could represent a reversal in a longer-term bullish trend.
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