Polygon (POL) Price Remains at $0.40, Potential Breakout Nears
Polygon price hovers around $0.40 but the overall picture looks bullish as on-chain data shows positive signs.
Key Takeaways
- Whale accumulation points to reduced selling pressure for POL.
- The double bottom pattern signals a potential bullish reversal for POL.
- POL could start a new five-wave upward impulse soon.
Polygon (POL) price has shown bullish momentum, with a 4.69% price rise and a double bottom pattern suggesting a potential breakout. Whale activity has increased following a recent upgrade, as large holders moved POL tokens from exchanges to cold wallets, indicating accumulation and reduced selling pressure.
This shift is often a bullish signal, as fewer tokens on exchanges can support upward price trends. Technical indicators like RSI and MACD also point to potential continued growth, while rising adoption rates bolster long-term prospects for POL.
Polygon Fundamentals
Looking at the investor profitability graph , we can see that 95.81% of the tracked addresses are out of money. Only 13.86k, or 2.24%, are in profit, and 1.94% are at the breakeven point.
Although the picture looks bearish, it can be interpreted as bullish. This is because it suggests that those who held the stock weren’t willing to sell at higher prices and wouldn’t likely be ready to sell now.
The addresses data shows increased activity from Sept. 8 to 12, spiking to its highest since July 2023.
Even though it reverted to its previous levels and looks rather calm, this spike could indicate that some investors are sitting on the sidelines and waiting for a catalyst to turn around the sentiment so they can enter.
Larger holder netflow diminished, a sign of accumulation as investors moved their tokens from exchanges to cold wallets. From its peak of 101 million on Sept. 18, it fell to 5 million POL today, Sept. 20.
POL Price Analysis
On March 13, POL hit its yearly high of $1.30, an 85% rise from its Jan. 24 low of $0.70. However, by April 13, it had dropped below $0.60, a decline less severe than the dip from mid-September of the previous year.
From March, a new downtrend developed, leading to a low of $0.36 on Aug. 5 and later on Sept. 6, forming a double bottom. Analyzing the wave structure, it looks like it has ended as a five-wave impulse with a higher degree of wave C and its wave Z from the WXY correction beginning at the ATH.
Since its August and September lows are the lowest prices since April 2021, this territory is the most significant support zone. As such, an upturn is expected, with the price of POL now commencing a new bull cycle.
If this is true, we will see a five-wave pattern to the upside, leading POL to a near-term high of $0.70. If that happens and the price establishes a higher low on the following retracement, it confirms this scenario, and higher values would be expected by the end of 2024.
Polygon’s MATIC to POL Swap Fails to Boost Price, Down 61% This Year
Polygon Aims to Unlock $30 Trillion in Real World Assets: Is a MATIC Price Surge Imminent?
