Despite recent setbacks, POL surge in whale activity and bullish patterns could lead to a rise
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Key Takeaways
Addresses holding between 1 million and 10 million POL have purchased nearly 195 million since October.
POL’s price could rise past the descending trendline, potentially pushing above the $0.63 resistance.
If the token sustains bullish momentum, this analysis reveals the potential POL target in the short term.
Between Nov. 5 and Dec. 3, POL, the Polygon Ecosystem Token, rallied from $0.29 to $0.77. Since reaching that height, POL’s price action has been underwhelming, dropping recently to $0.41.
Despite the decline, the altcoin has experienced a surge in whale activity.
Here is what the recent interaction with these key stakeholders could mean for the token’s price going forward.
POL migrated from MATIC on Sep. 4, 2024, as the Polygon community expected the transition to be bullish. However, it turned out to be the opposite as the altcoin’s value plunged from $0.45 to $0.29 within two months.
But amid the decline and uptrend between November and December, on-chain data from Santiment shows that whales were buying the dip. Specifically, the balance of POL held by addresses owning between 1 million and 10 million tokens stood at 192 million on Oct. 21.
As of this writing, that figure has increased to 386 million, indicating that whales accumulated about 200 million tokens within the last three months. This accumulation is worth over $80 million at the current market value.
A descending triangle is a pattern formed by a series of lower highs and a horizontal lower support level, indicating a potential downtrend continuation. However, in POL’s case, it has bounced off the support line at $0.44.
Following this bounce, the Chaikin Money Flow (CMF), which tracks the level of accumulation and distribution, has risen above the signal line. This break above the zero midpoint indicates a bullish divergence for POL and validates whales’ accumulation.
If the CMF reading remains positive, POL’s price might jump above the resistance at $0.52. This potential breakout could also lead the token to rise above $0.63, which has been held for 35 days since Dec. 12.
On the 4-hour chart, technical indicators also hint at a bullish trend. For instance, the 12 EMA (blue) on the Moving Average Convergence Divergence (MACD) has crossed above the 26 EMA (orange).
This crossover, alongside the positive reading of the MACD, indicates that momentum around POL remains bullish. In addition, the Relative Strength Index (RSI) in the mentioned timeframe has climbed past the neutral region.
If this trend continues, POL’s price will likely rise to the 0.768 Fibonacci retracement level at $0.69, above the 35-day resistance. A highly bullish scenario could see the token’s value surge retest $0.77.
POL/USD 4-Hour Chart | Credit: TradingView
However, if POL struggles to breach the resistance situated at the 0.618 Fib level, this forecast might not happen. In that scenario, the token could slide to $0.41.
Another factor that could affect the price action is Ethereum (ETH), as it shares a strong correlation with it.
Should ETH’s price slide below $3,000, the bullish prediction might be invalidated, and POL could experience a severe correction.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
