Polygon (POL) reached a four-month high today, following a daily increase of 11%. The cryptocurrency briefly broke the $0.60 mark before pulling back, sparking bullish sentiment among investors and market observers. Therefore, a well-known cryptocurrency analyst predicts that POL will increase significantly by 2,500% over the next few months.
On-chain indicators for Polygon have turned bullish.
In the past three weeks, Polygon has performed well, rising about 107% since the market surge on November 5. The price of POL (formerly MATIC) has risen from below $0.30 to a four-month high of $0.61.
This performance is driven by multiple factors, leading to a nearly 40% increase in the token price over the past seven days and possibly staging "one of the most hated rebounds," as Ali Martinez shared on X.
The analyst explained that Polygon experienced a "significant surge in on-chain indicators" over the past week, which could drive POL's price to experience a "crazy" price movement in the future.
Martinez noted that many investors held onto Polygon during the last cycle when the project's token reached an all-time high of $2.92. However, most of them are at a loss, as only 15.11% of Polygon holders are in profit.
According to the post, this is a positive sign for POL's price trajectory, as most investors are unlikely to sell to take profits at the current price range. The analyst added that on-chain data indicates a new wave of investors is preparing for the second round of rebounds.
The recent increase in daily active addresses, trading volume, and whale activity suggests this. POL's daily trading volume grew by 190% last week, jumping from $250 million to $736 million.
Additionally, over the past week and a half, whales have purchased more than 140 million POL, currently valued at nearly 80 million dollars, with significant large purchases increasing since November 5.
Will POL reach $15 in this cycle?
Martinez stated that with the crazy buying and selling pressure from whales decreasing, the technical outlook for POL "looks very good". For him, this cryptocurrency is about to break out of a multi-year descending triangle.
The analyst explained that Polygon has been consolidating in a descending triangle pattern since hitting an all-time high nearly three years ago. About a week ago, the token "bounced from the x-axis of the triangle," and its moving average convergence/divergence (MACD) "is on the verge of a bullish crossover."
This indicates that, despite the overall sentiment still being bearish, "bullish signals are piling up," suggesting a potential rebound to new highs.
Based on this, Martinez predicts that POL's breakout could lead to a 2,500% increase over the coming months. He detailed that a weekly closing price above $0.7973 could trigger a rise to $15.27 and added that this could also trigger a 6,200% increase to $36.17.
The analyst added that the most important support level for POL is in the price range of $0.375 to $0.386, which was broken a week ago, and there has been little resistance at higher levels.
As of the time of writing, POL is trading at $0.58, having risen 75% over the monthly timeframe.