Following its rebranding from MATIC, POL (formerly MATIC) is witnessing a noticeable shift in overall market sentiment, with indicators from both the general crowd and smart money reflecting a growing sense of optimism.
Currently, the crowd sentiment stands at 0.95, while the smart money indicator is an impressive 3.00. This surge in bullish sentiment, combined with an uptick in network activity, has the potential to fuel a significant movement in the price of POL.
Despite this, Polygon’s price action has yet to break out of its consolidation phase. At present, the token is trading at $0.3636, marking a decline of 2.49%. Investors are now pondering whether this positive sentiment will result in a sustained upward trend.
Likelihood of a Breakout in POL’s Technical Analysis
The price action of Polygon continues to operate within a descending channel, struggling to escape the consolidation phase trapped between $0.4477 and $0.5761. Furthermore, the recent candlestick pattern indicates that POL is approaching a critical juncture.
Therefore, the next price movement could prove decisive in determining whether there will be a rally or a continued consolidation. It is vital for any upward momentum that POL manages to break above the $0.4477 mark.
The Stochastic RSI, currently at 32.65, suggests that POL is hovering near the oversold territory, hinting at potential buying pressure in the upcoming period.
Furthermore, the MACD is showing a neutral signal, with minimal divergence observed between the MACD and signal lines. This suggests that Polygon might undergo further consolidation before making a definitive move.
Analysis of On-chain Metrics: Rising Active Addresses and Transactions
Fascinatingly, the fundamental on-chain data for Polygon reflects a consistent level of interest. Over the last 24 hours, active addresses have increased by 0.96%, while the transaction count has seen a 0.86% rise, totaling 2.49K transactions according to data from CryproQuant.
These incremental upticks in network activity could signify a resurgence in user engagement, which may bolster the prevailing optimistic outlook. Nevertheless, if there isn’t a more substantial upward price movement, these developments may fall short of sustaining a bullish trend over the long haul.
POL OI-weighted Funding Rate: Neutral Outlook with Untapped Potential
When examining the futures market, the POL OI-weighted funding rate has remained steady at 0.0100%. Consequently, this neutral rate indicates that neither bullish nor bearish forces are significantly impacting the market at present.
Nevertheless, any modifications to this funding rate could signify a shift in momentum, particularly if it aligns with the increasingly positive sentiment among smart money players.
The prevailing bullish sentiment surrounding POL appears evident, especially from the perspective of smart money. However, the critical factor lies in whether the price can surge above the resistance level at $0.4477.
Should POL successfully break out, the potential for substantial upside gains exists. Nonetheless, until this breakthrough materializes, exercising caution is advisable given the token’s current status within a consolidation phase.