Derivatives traders are boosting Polygon’s price momentum with rising Open Interest and positive funding rates.
Spot traders are selling, with $4.1 million worth of POL moved to exchanges.
Despite selling pressure, Polygon may find support at $0.5478 and potentially rise to $0.6127.
Polygon (POL) has seen impressive growth recently. In just a month, the token rose 66.28%, with weekly and daily gains of 27.43% and 2.02%, respectively. This surge shows strong market sentiment and increasing accumulation. As the token gains momentum, derivatives traders play a critical role in driving this upward trend. Meanwhile, analysts are still bullish on POL, despite selling pressure.
https://twitter.com/beyondthebeat__/status/1862090453710946693?t=kXYJuH6ah5nUlAM3aF0URw&s=19 Derivatives Traders Driving Bullish Momentum
Data reveals how derivatives traders are fueling Polygon's price surge. Open Interest (OI), which tracks unsettled futures contracts, has risen by 1.82%, reaching $115.87 million. This increase suggests more traders are betting on the token’s continued rise. Long positions dominate, signaling confidence in Polygon’s future.
The Open Interest Weighted Funding Rate shows further bullish signs. After rising to 0.0023%, this metric points to a growing trend of upward price movement. These positive figures indicate that derivatives traders are backing the token, pushing it toward higher levels despite spot traders’ sell-offs.
Will Polygon Overcome Selling Pressure?
Despite the bullish outlook from derivatives traders, spot traders are beginning to sell. In the last 24 hours, $4.1 million worth of POL moved to exchanges, suggesting a shift in sentiment among some traders. However, the technical chart shows optimism.
A minor dip may occur due to selling pressure, but support is likely at $0.5478. If this level holds, the token could rebound, targeting $0.6127—an increase of 14.56%. Continued buying from derivatives traders could help absorb selling and keep Polygon’s momentum alive.
While selling pressure from spot traders poses some risk, derivatives traders remain a powerful force. If buying activity continues and the market sentiment stays positive, Polygon could maintain its upward momentum.
The post An In-Depth Analysis of How Derivatives Are Shaping Polygon’s Price Momentum appeared first on Crypto News Land.
