- Polygon shows bullish signals with price bounce, Stoch crossover, and MACD nearing a breakout.
- Declining exchange supply ratio and whale activity suggest growing investor confidence in POL.
- If momentum continues, Polygon could break past $0.46 and target $0.57 resistance level.
Polygon (POL) has recently experienced a significant rise to $0.4778. Despite high volatility, the token remains strong, gaining 14.26% weekly and 17.17% monthly. Analysts, believe Polygon is on the brink of a rally. In particular, Ali Martinez points to three key signals indicating bullish momentum. He calls it a “hated rally,” noting that many traders might stay skeptical and miss out.
Signs Pointing to a POL Rally
The first sign is Polygon’s price bounce off the triangle’s X-axis. This bounce suggests buyers are stepping in and halting further declines. Such moves often signal an upcoming breakout, adding strength to bullish predictions.
The second indicator is the Stochastic Oscillator (Stoch). The K line has crossed above the D line, showing momentum is shifting toward buyers. This shift often precedes price reversals and strengthens market confidence.
The third factor involves the MACD on the 2-week chart. The MACD line is nearing a crossover above the signal line. This move typically signals the start of an uptrend, giving traders another reason to anticipate gains.
Market Dynamics Support an Uptrend
Investor behavior supports the idea of a rally. The exchange supply ratio for Polygon has dropped to 0.0072, showing investors are moving tokens to private wallets. This trend reflects growing confidence in long-term price gains.
Whale activity also supports bullish sentiment. The Large Holders’ Netflow to Exchange Netflow Ratio has shifted from 3917% to -55%. A negative ratio suggests whales are withdrawing tokens from exchanges, indicating accumulation.
If momentum continues, Polygon could break past $0.46 resistance and target $0.57. The $0.57 level remains a challenge due to past rejections, but current conditions favor an upward move.
Polygon is showing strong potential for growth, with technical and market indicators aligning. This rally could reward traders who act early while skeptics remain on the sidelines.
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