Polygon (POL), formerly known as MATIC, has recently reached an impressive four-month high. Following a significant daily surge of 11%, the cryptocurrency exceeded the $0.60 threshold before experiencing a slight pullback. This remarkable performance has ignited a wave of optimism among investors and analysts, with some predicting substantial growth in the coming months.
Polygon’s On-Chain Metrics Indicate Bullish Trends
Over the past three weeks, Polygon has demonstrated an extraordinary upward trajectory, climbing approximately 107% since the market surge on November 5. The token’s price has ascended from under $0.30 to a noteworthy four-month high of $0.61. This upward momentum has been driven by various factors that have propelled the token’s value by almost 40% in the past week. According to prominent analyst Ali Martinez, this could pave the way for a significant rally in the near future.
Martinez highlighted that Polygon has witnessed a substantial increase in on-chain metrics over the last week, suggesting potential for a dynamic price movement ahead. Despite the fact that many investors acquired Polygon during a previous cycle when the token reached its all-time high (ATH) of $2.92, a mere 15.11% of these holders are currently profiting. This scenario implies that most investors are likely to hold onto their holdings, anticipating higher gains.
Recent data shows a surge in daily active addresses, transaction volumes, and whale activity, indicating a renewed interest in Polygon. POL’s daily trading volume has surged by 190% within the past week, leaping from $250 million to $736 million. Furthermore, in the past week and a half, whales have accumulated over 140 million POL, currently valued at nearly $80 million, showcasing a significant uptick in large-scale purchases since November 5.
Predictions for POL’s Future: A Potential Rise to $15?
Martinez posits that the combination of whale purchases and decreased selling pressure has positioned POL for a potential breakout. The cryptocurrency appears to be preparing to escape from a multi-year descending triangle pattern that has persisted since its ATH nearly three years ago. According to Martinez, the token recently rebounded off the triangle’s x-axis, and its Moving Average Convergence/Divergence (MACD) indicator is nearing a bullish crossover.
While the overall sentiment remains somewhat bearish, accumulating bullish signals suggest a possible rally towards a new ATH. Martinez anticipates that a breakout could trigger a remarkable 2,500% rally in the coming months. Achieving a weekly close above $0.7973 might spark a surge to $15.27, with the potential for an explosive 6,200% increase to $36.17.
The analyst also identified a crucial support zone for POL between the $0.375 and $0.386 price range. This support has been surpassed recently, encountering minimal resistance at higher levels.
As of now, POL is trading at $0.58, reflecting a significant 75% increase over the past month.
Conclusion
The recent surge in Polygon’s value and its bullish on-chain metrics suggest potential for further gains in the near future. Investors and market watchers are closely monitoring POL’s performance, with some optimistic about the possibility of substantial growth. As the cryptocurrency market remains dynamic, Polygon’s trajectory will be an interesting development to follow.
