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- POL has surged over 22.24% over the past week.
- Market fundamentals suggest a rise to recent highs of $0.45 is possible.
After a steady decline, Polygon (POL) has been on the rise over the past month. After hitting a local low of $0.2853, the altcoin showed a strong rally.
In fact, at the time of writing, Polygon was trading at $0.3868. It rose 8.0% compared to the previous day. Likewise, the altcoin is up 22.24% on the weekly chart, extending its monthly uptrend to 5.38%.
This strength is further accentuated by increased trading activity. As a result, trading volume increased by 219.75% in 24 hours.
Current market conditions have analysts pondering the future trajectory of POL. One of them is popular cryptocurrency analyst Man of Bitcoin, who cited the fifth wave of the Elliott Wave to suggest a potential upside.
market psychology
In his analysis, the Man of Bitcoin assumed that POL was bullish on impulse.
Source: X
According to him, this move has caused the altcoin to reach a downward trend line and is currently consolidating.
This uptrend leaves immediate support around $0.377 and $0.348, which could maintain the bullish momentum.
As long as POL holds at this level, it could strengthen the altcoin’s break from the bearish trendline. A breakout of this level would be a clear indication that a fifth wave is developing.
What the price chart suggests
While the analysis provided above provides a promising outlook for altcoins, it is important to cross-check other market indicators to determine what they suggest.
Source: TradingView
First, according to AMBCrypto, POL was experiencing strong upward momentum with increased buying activity at press time.
This is proven by the fact that the polygon’s Directional Movement Index (DMI) increased from +DI. At the time of writing, +DI was 35 and ADX was 34.
Additionally, Polygon’s Relative Strength Index rose from 24 to 63. The spike in RSI shows that there was more buying pressure compared to selling.
Source: Coinglass
This means that the surge in trading seen the previous day was mainly buyers.
Source: Santiment
Finally, Polygon’s Whale deal count (>100,000) remains relatively high, with 27 deals closed out of 19 at press time. This showed increased accumulation by large holders.
Read Polygon (POL) price forecast for 2024-2025
In short, POL is currently experiencing strong upward momentum and favorable market conditions. If these conditions hold, POL’s daily candlestick will close around $0.4.
A move above this level would see POL reach $0.45 in the near term.