Polygon (POL) hit a four-month high today, following an 11% daily surge. The cryptocurrency surpassed the $0.60 mark before retracing, sparking bullish sentiment among investors and market watchers. As a result, a renowned crypto analyst has predicted a massive 2,500% rally for POL in the coming months.
Polygon On-Chain Metrics Turn Bullish
Polygon has had a remarkable performance over the past three weeks, rising about 107% since the November 5th market pump. POL, formerly MATIC, saw its price rise from below the $0.30 mark to a four-month high of $0.61.
This performance was driven by several factors, which have driven the token's price up by nearly 40% in the past seven days and could represent 'one of the most hated rallies', as Ali Martinez shared on X.
The analyst explained that Polygon has been experiencing a ‘major spike in on-chain metrics’ over the past week, which could lead to ‘wild’ price action for POL in the future.
Martinez noted that many investors have been holding Polygon since the previous cycle, where the project’s token reached its all-time high (ATH) of $2.92. However, most of them are recording losses, as only 15.11% of Polygon holders are in the green.
According to the post, this is a positive sign for POL's price action as most of its investors will not sell for profit at current price ranges. The analyst added that on-chain data suggests a new wave of investors are positioning themselves for the second leg of the rally.
This has been signaled by the recent increase in daily active addresses, transaction volume, and whale activity. POL’s daily trading volume has seen a 190% increase in the past week, jumping from the $250 million mark to $736 million.
Additionally, whales have purchased over 140 million POL, now worth around $80 million, in the past week and a half, with large-scale purchases increasing significantly since November 5.
Could POL Reach $15 This Cycle?
Martinez suggested that with the whale buying spree and reduced selling pressure, the 'POL technicals are looking pretty good'. For him, the cryptocurrency is approaching a breakout of a multi-year descending triangle.
The analyst explained that Polygon has been consolidating in a descending triangle formation since hitting its ATH nearly three years ago. Almost a week ago, the token ‘bounced off the triangle’s x-axis’ and had its Moving Average Convergence/Divergence (MACD) Index ‘on the verge of a bullish crossover.’
This suggested that while sentiment remains mostly bearish, 'bullish signals are accumulating', indicating a potential rally towards a new ATH.
Based on this, Martinez predicted that a POL breakout could potentially lead to a 2,500% rally in the coming months. A weekly close above $0.7973 could trigger a rally to $15.27, he detailed, adding that it could also trigger a 6,200% jump to $36.17.
The analyst added that the most important wall of support for POL was between the $0.375 and $0.386 price ranges, broken more than a week ago, with little resistance at higher levels.
At the time of writing, POL is trading at $0.58, up 75% on a monthly basis.