Recent market activity has seen Polygon [POL] achieve remarkable growth. Over the last month, the cryptocurrency surged by 66.28%, with weekly and daily gains of 27.43% and 2.02%, respectively.
With a positive market sentiment and ongoing accumulation, POL appears poised to exceed its current daily increase of 2.02%, sustaining its upward trajectory.
Futures Traders Drive POL Towards a Bullish Direction
Data from Coinglass reveals that alongside investor accumulation, futures traders have also embraced the uptrend.
The Open Interest (OI) has climbed by 1.82% to $115.87 million, indicating heightened activity in the futures market, with a prevalence of long positions and POL approaching its previous peak in OI.
The Open Interest Weighted Funding Rate, a metric reflecting funding expenses and directional bias based on OI, suggests a probable further climb for POL after a significant increase and a value of 0.0023%.
These indicators point towards an optimistic future spurred by futures traders, despite observations from CryptoCrypto that spot traders are still engaged in selling.
Is POL Resilient Against Sell-offs?
Spot traders have initiated the sale of POL on exchanges, signaling a decline in interest in the asset.
The Exchange Netflow data reveals that $4.1 million worth of POL has been sent to exchanges in the last 24 hours for potential sell-offs.
Nevertheless, CryptoCrypto has identified a continuous accumulation on the technical chart. If this accumulation persists, buyers at discounted prices might absorb the supply stemming from spot traders, particularly as selling activity intensifies.
Anticipating a Dip Before an Upward Movement?
The chart anticipates a minor decline in POL before it resumes its upward trend, despite being within a bullish symmetrical triangle on the hourly chart. This dip is likely triggered by spot traders’ selling pressure.
An expected reversal is projected once the asset hits the support level of 0.5478. However, rapid execution of selling orders could drive it lower to 0.5347, from where it would recommence its upward climb, potentially reaching a peak of 0.6127 with a gain of 14.56%.
Following this milestone, there is a chance for the asset to sustain its upward trajectory, especially in the presence of a positive market sentiment and persistent buying interest from futures traders.