Polygon (POL) price has been slightly bearish for the past three days, but there may still be some upside left for the price, as suggested by Ali Charts on X.
Ali suggests that Polygon (POL) might be on the verge of significant rallies—the most hated rallies. There are bearish sentiments in the ecosystem. However, he points out that several bullish indicators are emerging, signaling a potential reversal in trend.
The analysis reveals a large descending triangle pattern, with POL price recently bouncing off the triangle’s lower x-axis support level. This bounce coincided with a critical Fibonacci retracement level at 0.618 ($0.2873), which often serves as a strong support zone in technical analysis.
Some Bullish Indicators Are Piling Up
Some of the bullish indicators that are showing include:
Stochastic Oscillator
The Stochastic indicator has flipped bullish, marked by a crossover in the oversold zone. This shift suggests a change in momentum towards the upside. Historically, such crossovers from oversold positions are precursors to trend reversals.
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MACD (Moving Average Convergence Divergence)
The MACD histogram is transitioning from bearish (red) to bullish (green), indicating a reduction in bearish momentum. The convergence of the signal lines hints at a potential bullish crossover, which is typically a strong confirmation of an impending rally.
Fibonacci Levels
The recent bounce at the 0.618 Fibonacci level reinforces its role as a robust support area. Future resistance levels are anticipated at 0.786 ($0.7973) and the 1.0 Fibonacci extension ($1.9255), providing targets for upward movement.
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Ali has outlined a possible breakout path for POL, suggesting targets at higher Fibonacci extension levels, including 1.272 ($15.2670) and 1.414 ($18.1703). These projections indicate long-term bullish potential.
The term “most hated rallies” reflects a contrarian perspective, where the overall bearish sentiment may lead traders to underestimate the bullish signals. This situation can create conditions for a stronger rally as short-sellers might be compelled to cover their positions, further driving the price upward.
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