Over the past two weeks, Polygon (POL) has witnessed a notable increase in value. Starting from a low of $0.28, the cryptocurrency has surged to reach a peak of $0.47.
Currently, the price of POL stands at $0.4348, indicating a 2.89% daily gain and a 17.45% increase over the month.
Despite these positive movements, the weekly chart shows a slight decrease of 0.92%. POL is still far from its all-time high (ATH) of $1.29, down by 66.07%.
Given these market dynamics, there are concerns about the sustainability of the upward trend. To address this, the crypto analyst Ali Martinez has highlighted the importance of specific support levels for POL’s potential to reach higher highs.
Analysis of Polygon’s Market Sentiment
Martinez emphasized the critical role of the $0.375 and $0.386 support levels in sustaining a rally for POL.
He noted that these levels are crucial for POL to achieve new highs, as the resistance at these points is deemed insignificant.
When referring to resistance as insignificant, it indicates that there is likely minimal selling pressure at these levels.
Above these support levels, the resistance is weak, allowing buyers to dominate without strong opposition. This scenario could lead to a substantial upward movement for POL until it encounters significant resistance.
Evaluating POL’s Chart Trends
The current trading above these key support levels suggests that POL is shielded from immediate selling pressure.
By analyzing Polygon’s Advance Decline Ratio (ADR), it is observed to have surpassed the 1 mark, settling at 1.47 after a sharp dip. A value above 1 reflects growing optimism among investors, driving increased buying activity.
The surge in buying interest is further evident in Polygon’s Relative Strength Index (RSI), which has risen from 49 to 60. An uptrend in RSI signifies the entry of buyers into the market, amplifying buying pressure.
Notably, the rise in whale accumulation adds to the buying momentum, with large holders acquiring approximately 140 million POL tokens in the past four days, equivalent to $56 million.
This heightened activity among whales aligns with a surge in overall buying sentiment, indicating strong bullish behavior and active accumulation among significant investors.
The confidence of large holders in POL is also reflected in the expanding MVRV long/short difference, climbing from -2.37 to -1.25.
When this ratio increases, it suggests that long-term holders are experiencing profits and maintain a positive outlook on the future value of the cryptocurrency.
In summary, POL is currently witnessing robust buying activity, particularly from major holders, signaling conditions that could lead to price appreciation driven by a tightening supply.
Therefore, these indications point towards potential further increases in POL’s value. If the positive market sentiment persists, POL is likely to reclaim and surpass the $0.47 level, with a notable resistance anticipated around $0.57.