While Polygon (POL) has shown a lackluster price trend, technical indicators are hinting at a potential major comeback for the token, according to a leading analyst.
Despite a notable price increase in the broader market, Polygon’s (POL) price action has lagged behind its major-cap altcoin peers. The cryptocurrency experienced a 2.73% rise over the last 24 hours and a 17.41% weekly gain, showcasing modest upward momentum.
In contrast, other altcoins like Dogecoin (DOGE) and XRP have delivered stronger returns of over 120% during the current rally. This discrepancy has raised questions about Polygon’s ability to compete.
Notably, blockchain analyst Ali Martinez highlighted potential bullish signals for Polygon, suggesting a “hated rally” could be on the horizon. This assertion comes as technical indicators reveal a possible continued rally.
Technical Indicators Signal Momentum
Martinez’s technical analysis of Polygon’s price action identified key bullish indicators. The asset’s price recently rebounded from the x-axis of a descending triangle, a critical technical level. This pattern suggests a potential rally toward a key resistance level defined by the triangle’s descending trendline. Overcoming this resistance could pave the way for additional upward movement.
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
Complementing this pattern, the Stochastic oscillator showed a bullish crossover. Martinez observed that the %K line (blue) had crossed above the %D line (orange), indicating increasing buying pressure. This indicator often signals the early stages of a trend reversal.
Similarly, Polygon’s moving average convergence divergence (MACD) is nearing a bullish crossover, with the MACD line approaching the signal line. A confirmed crossover would signify waning bearish momentum, as evidenced by the histogram bars turning less negative.
Polygon (POL) To Rally by 8,216% to $36
Amid this observation, Ali Martinez’s chart analysis indicated the potential for POL to surge to a target of $36. If POL were to reach $36 from its current price of $0.4329, it would represent an approximate gain of 8,216%.
On-Chain Activity Reflects Rising Interest
In addition to technical signals, Polygon’s on-chain metrics point to growing market participation. Two days ago, Martinez noted a significant increase in daily active addresses, transaction volume, and whale activity.
These developments indicate heightened interest in Polygon, often a precursor to bullish price action.
Potential Price Targets for Polygon Upon Breakout
Earlier, Martinez proposed ambitious price targets for Polygon, identifying a longstanding resistance trendline on the weekly chart that has hindered Polygon’s growth since its December 2021 peak.
The analyst noted that breaking past this trendline could mark a turning point for the asset. Martinez outlined a near-term target of $0.89, which would represent a 167% gain from the current levels. Additionally, he projected a secondary target of $8, reflecting a potential 2,387% increase.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
