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- 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.