Polygon (POL) reached a four-month high today, with a daily increase of 11%. The cryptocurrency briefly broke the $0.60 barrier before retreating, sparking bullish sentiment among investors and market observers. Therefore, a well-known cryptocurrency analyst predicts that POL will rise significantly by 2,500% in the coming months.
Polygon's on-chain metrics turn bullish
Over the past three weeks, Polygon has performed well, having risen 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 various factors that led to the token price rising nearly 40% in the past seven days and could stage 'one of the most hated rebounds,' as Ali Martinez shared on X.
The analyst explained that Polygon experienced a 'significant surge in on-chain metrics' over the past week, which could drive POL's price into a 'crazy' price trend in the future.
Martinez pointed out that many investors held Polygon during the last cycle when the project's token reached an all-time high of $2.92. However, most of them incurred losses, as only 15.11% of Polygon holders made a profit.
According to the post, this is a positive signal for POL's price trend, as most investors will not sell for profit within the current price range. The analyst added that on-chain data suggests a new wave of investors is preparing for the second round of the rebound.
The recent increase in daily active addresses, trading volume, and whale activity indicates 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 worth nearly $80 million, with significant increases in large purchases since November 5.
Will POL reach $15 this cycle?
Martinez stated that with the crazy purchases by whales and reduced selling pressure, POL 'looks very good technically.' For him, this cryptocurrency is about to break through a multi-year descending triangle.
The analyst explained that since reaching an all-time high nearly three years ago, Polygon has been consolidating in a descending triangle pattern. About a week ago, the token 'bounced off the x-axis of the triangle,' and its moving average convergence/divergence (MACD) 'is on the verge of a bullish crossover.'
This suggests that, despite the overall sentiment remaining bearish, 'bullish signals are piling up,' indicating a potential rebound to new highs.
Based on this, Martinez predicts that POL's breakout could lead to a 2,500% increase in the coming months. He elaborated that a weekly closing price above $0.7973 could trigger a rise to $15.27 and added that this could also spark a 6,200% increase to $36.17.
The analyst added that POL's most important support level is in the price range of $0.375 to $0.386, which was broken a week ago and has faced little resistance at higher levels.
As of the time of writing, POL's trading price is $0.58, having risen 75% over the monthly timeframe.
