Following a period of decline, Polygon [POL] has recently experienced a significant turnaround. After dropping to a low of $0.2853, the digital asset has shown strong upward movement.
Currently, Polygon is trading at $0.3868, indicating an 8.0% increase in the last 24 hours. Moreover, the coin has seen a remarkable 22.24% surge over the past week, with an additional 5.38% growth over the month.
This positive trend is reflected in the heightened trading volume, which has spiked by 219.75% within a single day.
The current market dynamics have sparked discussions among analysts regarding the future path of POL. Notably, well-known crypto expert Man of Bitcoin has suggested a potential upward trajectory based on the Elliot wave theory.
Market Sentiment Insights
In his assessment, Man of Bitcoin observed that POL has exhibited a bullish move to the upside.
According to his analysis, this rally has propelled the coin to approach the downtrend line before entering a consolidation phase.
Key support levels at $0.377 and $0.348 are expected to uphold the bullish momentum if maintained by POL.
If the coin continues to hold above these levels, it could position itself for a breakthrough beyond the descending trendline, indicating the development of Wave 5.
Evaluating Price Trends
While the aforementioned analysis paints a positive picture for POL, it is crucial to cross-verify with other market indicators to confirm the prevailing trends.
Initially, according to CryptoCrypto, POL has displayed a robust upward trend with an evident increase in buying activities at the time of reporting.
Moreover, Polygon’s Directional Movement Index (DMI) has depicted a rise in +DI, standing at 35, alongside an ADX of 34.
Additionally, the Relative Strength Index (RSI) for Polygon has surged from 24 to 63, indicating higher buying pressure compared to selling activities.
This surge in trading volumes suggests a predominantly bullish sentiment driven by buyers’ activities.
Lastly, Polygon’s Whale transaction count (100k>) has remained notably elevated, registering 27 transactions at its peak and 19 currently, indicating increased accumulation by major holders.
In essence, POL is currently riding a strong upward momentum amid favorable market conditions. If these conditions persist, POL is poised to approach $0.4 in the near term.
A successful breach of this level could propel POL towards the $0.45 mark in the short run.