After months of stagnation, Polygon (POL) is showing signs of a recovery amid increasing whale activity and optimistic market sentiment.
The recent accumulation of POL tokens by large investors is an important development in terms of the token’s potential to surpass the critical resistance point at $0.6.
According to market analyst Ali Martinez, confidence among POL holders is starting to show in a market condition where only 15% are currently in profit.
Polygon is experiencing a surge in interest, fueled by whale activity and a desire to break through price resistance. Key data suggests that optimism is strengthening.
While Polygon has struggled with price action, recent developments suggest that could change. Crypto analyst Ali Martinez notes that POL has gained more than 26% in the past week, largely due to favorable market conditions.
However, it is stated that only 15% of POL investors are currently in profit. This does not create a short-term alarm situation; on the contrary, it can be said that most investors do not want to make a profit yet, which reduces short-term selling pressure, thus supporting the price increase.
There has also been a significant increase in on-chain activity for Polygon, with this increase in active addresses and trading volume attracting new investors. Martinez also cites significant whale activity, with large investors accumulating 140 million POL tokens, indicating strong confidence in the token’s upward movement.
As the momentum around Polygon grows, analyzing on-chain metrics also becomes important. Recent data suggests that the increase in the long/short ratio indicates a more bullish sentiment across the market. This is a strong sign that more investors are willing to buy and hold the POL token.
Another positive development is that Polygon’s open interest remains high with the recent price increase. The increase in open interest indicates that the current price trend is likely to continue, reinforcing optimism about POL’s future recovery. However, POL faces a significant hurdle: it needs to sustainably break the $0.6 resistance level to trigger a broader bullish rally.
Current market observations point out that if this resistance level is not broken, liquidation may increase and potential bullish momentum may weaken significantly.