TLDR
Polygon (POL) reached a four-month high of $0.61, representing a 107% increase since November 5
Daily active addresses and transaction volume have surged, with trading volume up 190% to $736 million
Whales have accumulated over 140 million POL (worth ~$80 million) in recent weeks
Only 15.11% of POL holders are currently profitable, suggesting reduced selling pressure
Analyst Ali Martinez predicts potential 2,500% rally to $15.27 based on technical analysis
Polygon’s native token (POL) has witnessed remarkable growth in recent weeks, climbing to a four-month high of $0.61. The digital asset, which recently rebranded from MATIC to POL, has demonstrated strong upward momentum with a 107% increase since November 5.
The surge in price comes alongside substantial growth in trading activity. Daily transaction volumes have skyrocketed by 190%, jumping from $250 million to $736 million in the past week alone. This uptick in volume suggests increasing market participation and growing interest in the layer-2 scaling solution.
Large-scale investors, commonly known as whales, have shown particular interest in Polygon during this period. On-chain data reveals that these wealthy investors have accumulated more than 140 million POL tokens, equivalent to approximately $80 million, over the past week and a half. This accumulation pattern began accelerating notably after November 5.
The current market dynamics present an interesting scenario for POL holders. Data indicates that only 15.11% of current holders are in profit, suggesting many investors acquired their positions at higher price levels during the previous market cycle. This situation potentially reduces immediate selling pressure, as most holders would need to see higher prices to realize profits.
Looking at daily active addresses, Polygon has experienced a marked increase in user activity. This metric, combined with rising transaction volumes, points to growing network usage and adoption. The expansion in these fundamental metrics often precedes sustained price movements in the cryptocurrency market.
Technical analysis of POL’s price action reveals a forming pattern that has caught the attention of market observers. The token has been consolidating within a descending triangle formation since reaching its all-time high of $2.92. Recent price movements suggest a potential breakout from this pattern.
Cryptocurrency analyst Ali Martinez has highlighted several technical factors that could influence POL’s future price movement. According to Martinez, the token recently bounced off a critical support level, while its Moving Average Convergence/Divergence (MACD) indicator approaches a bullish crossover point.
A lot of investors hold $POL from the previous cycle, and nearly all of them are at a loss.
In fact, only 15.11% of #Polygon holders are in the green. This is a positive sign for price action because many won't try to book profits anytime soon.https://t.co/yeOat6r517
— Ali (@ali_charts) November 25, 2024
The price action has established strong support between $0.375 and $0.386, a range that was successfully broken through over a week ago. This breakthrough has opened up the possibility for further upside movement, with relatively few technical resistance levels standing in the way of continued advancement.
The weekly chart for POL shows a clear upward trajectory, with the token recording a 75% increase over the monthly timeframe. This movement has been accompanied by increasing trading volumes, suggesting genuine market interest rather than temporary price manipulation.
On-chain metrics have shown an important spike over the last week, potentially setting the stage for what Martinez describes as “one of the most hated rallies.” This characterization stems from the fact that many investors who bought during the previous cycle are still underwater on their positions.
The recent wave of new investors entering positions suggests growing confidence in POL’s market prospects. This fresh capital injection, combined with whale accumulation, has contributed to the positive price action observed in recent weeks.
Transaction data shows sustained buying pressure, with large-scale purchases becoming more frequent since the beginning of November. This pattern of accumulation often precedes extended price movements in cryptocurrency markets.
Martinez suggests that a weekly close above $0.7973 could trigger a substantial rally. Based on technical analysis, he projects potential price targets of $15.27, representing a 2,500% increase from current levels. In a more optimistic scenario, he suggests the possibility of a 6,200% movement to $36.17.
The token’s recent performance places it among the stronger performers in the cryptocurrency market, with its monthly gains outpacing many other major digital assets. As of the latest market data, POL trades at $0.58, maintaining most of its recent gains despite market fluctuations.
Current trading patterns indicate sustained interest from both retail and institutional investors, with daily volumes remaining elevated compared to historical averages. The combination of increased network activity, whale accumulation, and technical breakouts provides the foundation for the recent price appreciation.
The post POL Price Action: Understanding Polygon’s Journey from $0.30 to $0.60 appeared first on Blockonomi.
