Analysis of Polygon’s (POL) on-chain data revealed a significant concentration of accumulation within the price bracket of $0.364 to $0.509. This particular range, where close to 9.97 Billion POL appeared to be inactive, highlighted the crucial nature of these levels as potential areas of support or resistance.
Currently priced at $0.330, a sustained upward movement beyond this accumulation range might indicate robustness and potential bullish sentiment for POL.
Over time, historical data has shown that levels at which substantial token volumes were acquired often played a pivotal role in shaping future price actions. Reclaiming and consistently holding the $0.50 range could instill confidence in investors, potentially leading to price stability or even an upsurge as trust in the asset grows.
In contrast, a failure to establish this area as a support zone could increase the likelihood of further downturns. Investors who bought in at higher prices might decide to liquidate, resulting in increased selling pressure. This scenario could exacerbate POL price declines, pushing the asset farther away from its accumulation range.
As POL continues its market journey, its ability to either consolidating above or dipping below this range might offer insights into the short-term price trajectory.
Assessment of POL’s Price Trends and Forecast
An evaluation of the POL/USDT pairing indicated a pattern post a liquidity sweep, characterized by a sharp surge in trading volume and a brief price jump. Subsequently, POL peaked at $0.515 before entering a prolonged downturn that accelerated in late January 2025.
At present pricing levels, POL is slightly above the critical liquidity sweep mark at $0.32, a level where it had previously shown resilience. This point serves as a crucial support threshold. Maintaining a position above this mark could demonstrate strength and potentially trigger a rally in prices.
The uptick in trading volume during the recent dip suggests accumulation at these lower levels, hinting at a possible upward trend in the future.
Conversely, a failure to sustain this support level poses the risk of further decline. The MACD, indicating bearish momentum in the current scenario, aligns with this cautious outlook.
A breach below $0.32 could pave the way for testing lower supports at $0.30 or even $0.28, potentially prompting a sell-off as traders seek to mitigate their losses.
Analysis of Total Active Addresses
Between mid-2019 and early 2025, the count of POL addresses surged, reaching a peak in late 2021, after which it plateaued and experienced a minor decline through 2024.
Throughout this period, the total address count and addresses holding balances showed correlations with the token’s price movements, seeing peaks and dips most notably in 2021 and 2022, respectively.
The total number of addresses with a balance currently stands at around 591.9k, slightly down from a recent high of 595.2k over a 30-day period, hinting at a marginal decrease in active engagement.
If the count of active addresses stabilizes or grows in the coming days, it could signify revived investor interest, potentially supporting a price rebound. Conversely, a further decline in active addresses might suggest a continuation of the prevailing bearish trend.