The price movement of Polygon [POL] was approaching a crucial point as it consolidated within a descending triangle on the 4-hour timeframe. The range between $0.47 and $0.41 remains a significant area, with proponents and detractors engaging in a tug of war for dominance.
Currently, POL is being traded at $0.4505, showing a slight 0.02% decrease in the past 24 hours. Consequently, a breakout in either direction is anticipated to dictate the next major move of the token. Will the supporters manage to overcome barriers and kickstart an upward trend, or will the critics drive prices down?
Is POL poised to breach the resistance level?
The price of POL is ensnared in a descending triangle, continually testing the $0.47 resistance mark. Another effort is being made to surpass this critical resistance area, paving the way for a substantial upward surge.
An upward breakout past $0.47 would signify a bullish push, potentially leading to a 40% upswing towards $0.63. Conversely, a failure to sustain above $0.41 might exert downward pressure, prompting a revisit to lower support levels.
This crucial battle will chart the immediate course of the token.
What does the uptick in active addresses imply?
The count of active addresses has surged by 1.17% in the preceding 24 hours. This escalation denotes heightened user interaction, indicating a resurgence of interest in the platform.
Elevating active addresses commonly indicate an escalating demand and probable market dynamic. If this pattern persists, it could underpin a bullish breakthrough. Nonetheless, continued engagement is pivotal for sustaining enduring expansion and price steadiness.
Does the transaction volume validate the market activity?
The transaction volume of POL has risen by 1.3%, accumulating a total of 2.886K transactions over the last 24 hours. This incline showcases consistent network utilization and a growing user involvement.
Moreover, heightened transactional activity frequently signals increased adoption, which might bolster a positive sentiment. Hence, if transaction volumes stabilize or continue to escalate, they could heighten the likelihood of piercing the crucial resistance threshold.
Why is the reduction in exchange reserve significant?
The exchange reserves have dwindled by 1.23%, currently resting at 56.9M. The declining reserves hint at a scarcity of tokens accessible for exchange, potentially indicating accumulation by long-term investors.
Diminished reserves typically alleviate selling pressure, establishing favorable conditions for a price upsurge. Nevertheless, if demand dwindles, this accumulation trend may not promptly translate into upward momentum.
Final Verdict: Will POL surge or plummet?
The price trajectory of Polygon stands at a critical crossroads. The uptick in active addresses and transaction volumes, accompanied by declining exchange reserves, point towards robust bullish prospects.
Hence, if the supporters breach the $0.47 resistance threshold, a rally towards $0.63 seems increasingly probable. Conversely, a failure to sustain this level might usher in a bearish dominance and a dip in the price. At present, all attention is riveted on the resistance zone.