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- POL has surged over 22.24% over the past week.
- Market fundamentals suggest a potential upside to a recent high of $0.45.
After a sustained decline, Polygon (POL) experienced a turnaround over the past month. After hitting a local low of $0.2853, the altcoin saw a sharp rise.
In fact, at the time of writing, Polygon was trading at $0.3868. This represents an increase of 8.0% over the past day. Likewise, the altcoin gained 22.24% on the weekly charts, with this uptrend extending by 5.38% over the month.
This upward trend is also reflected in the increase in business activities. Thus, the trading volume increased by 219.75% in 24 hours.
Current market conditions have analysts thinking about POL’s future trajectory. One of them is popular crypto analyst Man of Bitcoin, who suggested upside potential by citing wave 5 of the Elliot wave.
Market Sentiment
In his analysis, Man of Bitcoin posited that POL made an impulsive move higher.
Source:
According to him, this move pushed the altcoin to reach the descending trendline and is now consolidating.
This rise left immediate support around $0.377 and $0.348, which could maintain bullish momentum.
As long as POL maintains this level, it could strengthen the altcoin to break out of the descending trendline. A breakout from this level will clearly indicate that wave 5 is developing.
What the price tables suggest
While the analysis provided above offers promising prospects for the altcoin, it is essential to cross-check other market indicators to determine what they are suggesting.
Source: Tradingview
First, according to AMBCrypto, POL was seeing strong upward momentum with an increase in buying activity at press time.
This is demonstrated by the fact that Polygon’s Directional Movement Index (DMI) saw an increase of +DI. At the time of writing, +DI was at 35 while ADX was at 34.
Additionally, Polygon’s Relative Strength Index rose from 24 to 63. The rising RSI showed that there was higher buying pressure than selling.
Source: Coinglass
This means that the increase in trading activity seen over the past day is primarily among buyers.
Source: Santiment
Finally, Polygon’s Whale transaction count (100,000 >) remained relatively high, reaching 27 transactions to stand at 19 at the time of publication. This shows increased accumulation by large operators.
Read Polygon (POL) Price Prediction 2024-2025
Simply put, POL was currently experiencing strong bullish momentum and favorable market conditions. If these conditions hold, POL’s daily candlestick will close around $0.4.
A close above this level will strengthen POL to reach $0.45 in the near term.
