- Polygon’s price surged 26%, with low profit-taking indicating potential for further growth.
- Increased on-chain activity and whale accumulation show confidence in Polygon’s future.
- Overcoming $0.6 resistance could trigger a significant rally, despite potential liquidation risks.
Polygon (POL) has struggled with poor price action for several months. Despite the much-anticipated MATIC to POL upgrade, market performance has failed to impress. However, recent data shows signs of change. The question now is whether crossing the $0.6 mark could trigger the long-awaited rally.
$POL: The price must hold the last swing low that formed around $0.506. If the price breaks below this level, the structure to the upside might morph into a diagonal pattern at best. In this case $0.418 could offer structural support as well as $0.35.#Polygon pic.twitter.com/NeTnPH65cl
— More Crypto Online (@Morecryptoonl) November 26, 2024
Signs of Growth in the Market
Over the past week, Polygon’s price climbed more than 26%. This rise came with the overall market’s bullish shift. Despite this, only 15% of investors are currently in profit. This is a positive sign. A smaller number of profitable investors means fewer people are cashing out, which could help drive prices higher.
On-chain activity is also increasing. The rise in active addresses and transaction volume indicates new investors are entering the market. Additionally, large investors, or whales, have been busy accumulating POL tokens. Recently, whales added 140 million tokens to their holdings, showing confidence in Polygon’s future.
Overcoming Resistance and Facing Challenges
Polygon’s potential rally isn’t without obstacles. The $0.6 resistance level remains a key hurdle. If Polygon manages to close above $0.7973 on a weekly chart, the price could surge to $15.27 or even $36.17. But there’s a catch. The $0.6 mark could trigger a rise in liquidation, which often leads to price corrections. This could slow down the rally before it truly begins.
A positive sign is the growing number of long positions compared to shorts. Polygon’s open interest also remains high, suggesting continued bullish momentum. With these factors in play, the chances of a revival seem strong. However, the market remains cautious, and the $0.6 resistance must be overcome first.
In conclusion, crossing $0.6 could set Polygon on a path to significant gains. With increased whale activity, rising investor confidence, and a shift in market sentiment, the stage is set for a potential rally. If Polygon clears the resistance, the future could be very bright.
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