Polygon shows potential for major rally despite recent underperformance
Technical indicators reveal bullish crossover signals
Analyst projects ambitious $36 price target
Polygon (POL) appears poised for a price surge despite its recent underwhelming performance, according to leading blockchain analyst Ali Martinez.
While the broader cryptocurrency market has experienced substantial gains, Polygon’s modest 2.73% daily and 17.41% weekly increases have left investors questioning its competitive edge against peers like Dogecoin and XRP, which have delivered returns exceeding 120%.
I believe #Polygon $POL could stage one of the most hated rallies! While sentiment remains bearish, bullish signals are piling up:– Price bounced off the triangle's x-axis– Stoch flipped bullish– MACD is on the verge of a bullish crossover pic.twitter.com/h9xicj72oa
— Ali (@ali_charts) November 20, 2024
However, Martinez suggests a “hated rally” could be imminent, based on emerging technical patterns. The analyst’s detailed examination reveals that Polygon’s price has recently bounced off the x-axis of a descending triangle, establishing a critical technical foundation.
This pattern typically precedes significant upward movement, particularly if the asset can breach the triangle’s descending trendline resistance.
Polygon Stochastic oscillator presents bullish signals
Supporting this bullish outlook, the Stochastic oscillator presents encouraging signals, with the %K line (blue) crossing above the %D line (orange), traditionally indicating growing buying pressure and potential trend reversal.
The MACD indicator further reinforces this positive sentiment, approaching a bullish crossover as the MACD line nears the signal line, while histogram bars show diminishing negative momentum.
Perhaps most notably, Martinez’s chart analysis points to an ambitious price target of $36. This projection would represent an extraordinary 8,216% appreciation from the current price of $0.4329, highlighting the significant potential upside if technical patterns play out as anticipated.
On-chain metrics add weight to the bullish thesis, with Martinez noting a marked increase in daily active addresses, transaction volume, and whale activity over the past two days. These fundamental indicators often precede positive price action, suggesting growing market interest in Polygon.
Looking at specific price targets, Martinez identifies a longstanding resistance trendline dating back to Polygon’s December 2021 peak. Breaking this barrier could trigger a cascade of upward movement, with initial targets at $0.89 (167% gain) and $8.00 (2,387% increase) before potentially reaching the ultimate $36 target.
