Polygon [POL] Price Prediction: Will Polygon [POL] break the $0.4282 resistance, reach $0.5652?

Will Polygon [POL] Surpass $0.4282 Resistance and Target $0.5652?

The performance of Polygon [POL] has been notably strong, showing a 13.93% increase on the monthly chart and a 5.41% gain on a daily basis.

If the anticipated bullish scenario unfolds, these gains could potentially escalate significantly, pushing the price of POL closer towards the target of $5.6.

Expecting a 33% Increase with Head and Shoulders Pattern

POL is currently well-situated for a possible 33% surge, as the emergence of a head-and-shoulders pattern indicates a forthcoming upward movement. Historically, this pattern has played a crucial role in driving price rallies.

For the bullish scenario to materialize, a breakthrough above the neckline (resistance level) at 0.4282 is crucial for POL. Once this key resistance level is surpassed, the asset is expected to continue its upward trajectory.

With a successful breakout, POL could target $0.5652, offering a potential 33.13% gain. A price revaluation at this level might either lead to further upward momentum or a potential pullback.

Bullish Sentiment Surrounding POL

Currently, the positive Funding Rate of POL indicates strong buying activity, suggesting an imminent rally. The Funding Rate, as per Coinglass, stands at 0.0205% at the time of writing.

The Funding Rate serves as a measure of the cost associated with maintaining a balance between an asset’s spot and Futures prices. In this context, the dominance of long positions over shorts indicates a bullish market sentiment.

Moreover, Open Interest has climbed by 7.30% to $96.62 million, signaling a bullish tilt in the market with the majority of unsettled contracts being held by bulls.

Market volume has also seen a significant uptick by 98.12%, amounting to $606.64 million, further reinforcing the bullish trend. These on-chain metrics, in conjunction with the rising price of POL, paint a positive picture for the asset.

Robust Bullish Outlook

Technical indicators are strengthening the bullish stance on POL, with both the Balance of Power (BoP) and Relative Strength Index (RSI) indicating positive upward momentum.

The Balance of Power (BoP) measures the level of control exerted by buyers versus sellers. Currently, with a BoP reading of 0.41, it suggests that buyers are dominating the market, paving the way for potential price increases.

Furthermore, the RSI sits comfortably in bullish territory at 66.13, indicating that there is still room for further upside potential. This suggests that the asset has not reached an overbought condition and could sustain its upward trend.

If these technical indicators, alongside on-chain metrics, consistently demonstrate positive momentum, POL is likely to witness further gains in the market.