- Polygon’s new and improved native token delivers a 40% improvement in two weeks.
- MATIC’s $1 target, not seen since April 1, now relies on a “distrust rally.”
- CoinGlass data reveals short selling pressure on Polygon (MATIC).
The recently revamped Polygon blockchain has lagged significantly behind other major altcoins in recent rallies. The rally, fueled by the cryptocurrency-friendly outcome of the U.S. presidential election, has set multiple all-time highs for Bitcoin (BTC), but the major digital asset is not the only one sparking a clear rally.
Most blue-chip altcoins like Hedera Hashgraph (HBAR), Stellar (XLM), and Ripple (XRP) posted triple-digit gains to hit new quarterly price highs. In contrast, Polygon’s native cryptocurrency MATIC faced several months of turbulence during this bull market and made fewer gains.
Distrust of MATIC to bear fruit in POL rally?
Up 40% in 14 days, Polygon’s POL token hit a new monthly high of $0.46, but was rejected as low as $0.43 before hitting the $0.50 resistance barrier. The underlying altcoin in Layer-2 is still far from the three-month high of $0.5777 recorded on August 25, 2024.
Moreover, the recent breakout of Polygon (MATIC) creates favorable conditions for a “distrust rally,” as pointed out by veteran cryptocurrency analyst Ali Martinez. Simply put, a “distrust rally” occurs when most token holders are still in the red, in which case skepticism thrives.
The situation arises because Polygon (MATIC) is still 66% off its all-time high hit on March 13, 2024. It may be difficult to recapture the $1.29 peak as the refurbished POL coin shows a resistance level of just 9%. MATIC holders earn a post-adjusted profit of slightly less than $0.43.
Are there really bullish signs emerging for POL?
There are two recent bullish on-chain signals as Polygon’s native POL cryptocurrency hits a staged consolidation. In a follow-up analysis, cryptocurrency expert Ali Martinez declared that Polygon is primed for one of the “most hated rallies” in crypto, highlighting the Stochastic Relative Strength Index (StochRSI) and Moving Average Convergence Divergence (MACD) as key figures. I chose it as an argument.
According to further investigation Daily CoinThe pro analyst’s stance on Polygon (MATIC) is solidified as StochRSI is seen staying between 13.86 and 12.43 on the 4-hours chart. However, according to CoinGlass data, leveraged cryptocurrency traders mostly tend to sell POL tokens. In the last 24 hours, the long to short ratio has changed to 0.89, with longs accounting for 90% of Polygon (MATIC) liquidations in the derivatives market.
On the flipside
- Unlike other major altcoins, Polygon’s native cryptocurrency POL (MATIC) has declined by 47% as measured year-to-date (YTD).
- The total value locked (TVL) of Polygon L2’s DeFi ecosystem is $1.01 billion, more than nine times lower than the all-time high three years ago.
Why This Matters
Trader psychology tends to play a pivotal role in the market, while technical indicators provide an unbiased view of the price movements of altcoins.
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