Over the past 24 hours, Polygon [POL] has exhibited consistent growth, registering a significant 4.69% price surge, pushing its value to $0.3956 at the current moment.
The recent trading volume soared to $71,037,848, indicating a surge in trader interest.
While the price movement has been range-bound, technical indicators hint at an imminent significant shift in direction.
POL’s price action has been oscillating between a crucial support level at $0.3740 and a resistance level at $0.4045. With the price hovering near the resistance level, a potential breakout seems plausible.
From a technical analysis standpoint, a sustained close above $0.4045 could trigger a bullish trend continuation, targeting a move towards the $0.50 mark, implying a potential upside of approximately 23.12% from the current trading levels.
Validation of uptrend potential through double bottom pattern
The chart showcases a classic double bottom pattern, indicating a bullish reversal that often signals the conclusion of a downtrend.
This pattern emerges after two consecutive lows around the same level, accentuating strong support. The breakout above the double bottom’s neckline has already occurred, affirming the onset of an uptrend.
The projected target of the double bottom pattern aligns with a potential level close to $0.4100, slightly exceeding the current price of $0.3956.
At present, the Relative Strength Index (RSI) stands at 63.94, bordering on the overbought region, reflecting robust buying momentum.
Nonetheless, it also implies the likelihood of a brief pullback or consolidation before any further uptrend unfolds.
Other momentum indicators, like the Moving Average Convergence Divergence (MACD), bolster the optimistic outlook. The MACD line’s crossover above the signal line is a common signal of positive momentum.
The presence of green, ascending histogram bars further reinforces this bullish trajectory, affirming the strength of the recent breakout.
Increasing adoption rate signals heightened interest
Recent statistics highlight a rising adoption rate for POL, hitting 38.68% on September 18, despite a minor price dip to $0.3816.
Over the past 30 days, the average adoption rate stood at 30.63%, peaking at 43.60%, underscoring fluctuating yet predominantly positive adoption patterns.
This escalating interest could potentially foreshadow further price movements should the adoption trend continue its upward trajectory.
According to a recent report by CryptoCrypto, significant movements among POL whales were noted subsequent to the recent upgrade.
Major holders transferred POL tokens from exchange wallets to cold wallets, a move often indicating accumulation and diminished selling pressure.
This shift likely contributed to the observed recent price irregularities, as reduced liquidity on exchanges can bolster upward price movements.
This behavior hints at major holders positioning themselves for prospective gains, amplifying the bullish sentiment surrounding the current market landscape.