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.