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Polygon is showing signs of recovery as the token surged around 26% over the past 7 days. Despite the positive momentum, only 15.11% of holders are in profit. This shows that most long-term investors remain at a loss.
At the time of writing, the cryptocurrency is trading at around $0.56 and has an impressive market cap of $4.5 billion. While most investors are unlikely to exit at a loss after a previous bull run, the situation is setting the stage for the token’s potential breakout.
POL prepares for a disbelief rally: Crypto Analyst
According to the crypto analyst, 81.6% of Polygon holders are “out of money”, which reflects a high level of skepticism. Historically, such conditions spark a “disbelief rally”, where assets rebound sharply once sentiment shifts. This could help the cryptocurrency to cross the $1 mark.
On-chain data indicates a similar situation where the count of active addresses, transaction volume, and whale activity has increased.
Additionally, whales are also playing a crucial role in uplifting the cryptocurrency. Recently, whales purchased over 140 million POL tokens. This massive purchase shows a growing confidence in its long-term prospects.
Generally, the surge in whale accumulation signals a bottoming phase, as they often buy during market dips, anticipating future gains.
So, as we see no major selling pressure and whales buying, the technicals look very good.
I believe that #Polygon $POL consolidates in a multi-year descending triangle, and a weekly close above $0.7973 could trigger a rally to $15.27 or $36.17!https://t.co/sSSLk9XFHr
— Ali (@ali_charts) November 25, 2024
Technically speaking, the cryptocurrency could face a consolidation pattern within a multi-year descending triangle pattern. A weekly close above $0.79 could trigger a rally, potentially reaching $15.27 or even $36.17.
However, support levels are crucial. The $0.37 – $0.39 zone is a key demand area. If the cryptocurrency falls below this level, it could invalidate the bullish outlook. It could make the same demand area an essential stop-loss point for traders.