- POL price neared a critical resistance, with a double bottom pattern hinting at a potential breakout.
Whale accumulation and rising adoption rates signaled bullish momentum for POL as traders watch key levels.
As a seasoned analyst with years of experience in deciphering market trends, I find myself intrigued by Polygon [POL]. The recent price action has been fascinating, and the technical indicators are hinting at an imminent move that could reap significant rewards for investors.
In the past day, the cryptocurrency Polygon (POL) has demonstrated consistent growth, recording an impressive 4.69% rise. As a result, its current value stands at $0.3956.
The recent trading volume reached $71,037,848, reflecting growing interest among traders.
The current price fluctuations are taking place inside a specific boundary, yet technical signs hint at an upcoming major shift that might occur soon.
At present, the trading price of POL is moving within a defined range, with significant support at approximately $0.3740 and resistance at around $0.4045. The current position of the price suggests it’s near the resistance level, indicating a potential breakout might occur.
Based on technical analysis, if the price consistently closes above $0.4045, it may initiate a bullish trend that could potentially push the price towards $0.50. This rise is approximately 23.12% higher than the current trading prices.
Double bottom pattern confirms uptrend potential
The chart also displays a classic double bottom pattern, signaling a bullish reversal that often marks the end of a downtrend.
After two similar low points in a row, this pattern suggests robust support. The upward breakthrough beyond the upper line of the double bottom, which is known as the neckline, has taken place, signifying the commencement of an upward trend.
Based on the analysis of the double bottom formation, there’s a possible indication that the price might approach around $0.4100, which is slightly higher than its current value at $0.3956.
Currently, the Relative Strength Index (RSI) is at 63.94, which is close to the region indicating excessive buying activity, suggesting a robust trend in purchasing momentum.
Yet, it seems there could be a temporary dip or stagnation in the price before it potentially continues upward momentum.
Further evidence for a bullish trend comes from additional indicators like the Moving Average Convergence Divergence (MACD), which currently suggests a surge in positive momentum. Specifically, the MACD line is now positioned above the signal line, a common sign that the market’s momentum is on an upward trajectory.
The upward-trending bar graphs in green also bolster this positive market movement, underscoring the robustness of the latest surge in prices.
Rising adoption rate signals growing interest
Recent data indicates a rising adoption rate for POL, reaching 38.68% on the 18th of September, suggesting increased user engagement despite a minor price dip to $0.3816.
Over the past month, the typical adoption rate has been around 30.63%, with a peak of 43.60%. This suggests that while there have been ups and downs, overall the trend has been mostly positive regarding adoption.
If this increasing curiosity persists with more adoption, it might signal future price shifts.
As per a recent analysis by AMBCrypto, large investors (often referred to as “whales”) in POL have taken substantial actions in response to the latest update.
As a crypto investor, I noticed a significant shift of POL tokens from hot wallets associated with exchanges to cold wallets, implying that large token holders are accumulating more POL and reducing the supply available for selling. This trend could potentially indicate increased demand and less pressure on prices to drop due to sell-offs.
Read Polygon’s [POL] Price Prediction 2024–2025
This change could be a factor behind the unusual price fluctuations noticed lately, since limited supply on trading platforms might fuel increases in market prices.
This conduct suggests that significant investors could be preparing for potential profits in the near future, further boosting the overall optimistic trend in the market.
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2024-09-19 17:44