Polygon Surges 11% to Four-Month High with Analyst Predicting 2,500% Rally
Polygon (POL) reached a four-month high today after an 11% daily increase, surpassing $0.60 before a slight retracement. This price movement has generated bullish sentiment among investors, leading to predictions of a potential 2,500% rally for POL in the coming months.
Polygon On-Chain Metrics Turn Bullish
Over the past three weeks, Polygon's price has risen approximately 107%, moving from below $0.30 to a peak of $0.61. This surge follows a market pump on November 5 and has been driven by various factors, including a nearly 40% increase in the last seven days. Analyst Ali Martinez noted this could be “one of the most hated rallies.”
Martinez highlighted a significant spike in on-chain metrics, suggesting that POL may see substantial price action in the future. Currently, only 15.11% of Polygon holders are profitable, indicating that many investors from the previous cycle are holding their positions rather than selling at current prices.
On-chain data indicates a new wave of investors entering the market, evidenced by increased daily active addresses, transaction volume, and whale activity. POL’s daily trading volume surged by 190%, increasing from $250 million to $736 million within the week.
Whales have purchased over 140 million POL, valued at around $80 million, in recent weeks, with large-scale buying accelerating since November 5.
POL To Hit $15 This Cycle?
Martinez suggested that the combination of whale purchases and decreased selling pressure presents favorable conditions for POL. He indicated the cryptocurrency is approaching a breakout from a multi-year descending triangle pattern. Following a bounce off the triangle's x-axis, the Moving Average Convergence Divergence (MACD) indicator is nearing a bullish crossover.
Despite prevailing bearish sentiment, accumulating bullish signals point towards a possible rally to new all-time highs (ATH). Martinez predicts that a breakout could lead to a 2,500% increase, with a weekly close above $0.7973 potentially triggering a rise to $15.27, and even a 6,200% jump to $36.17 is possible.
The key support level for POL lies between $0.375 and $0.386, which was broken recently, leaving minimal resistance at higher levels. Currently, POL trades at $0.58, reflecting a 75% increase over the past month.
