Polygon [POL] finds itself at a decisive crossroads as its price action consolidates within a descending triangle on the 4-hour chart. Trading at $0.4505 with a marginal 0.02% dip in the past 24 hours, POL is hovering near a supply zone that could dictate its next significant move. The $0.47 resistance level remains a key battleground for bulls, while a slip below $0.41 could open the floodgates for bearish dominance.
Bullish Potential Above $0.47
POL’s price has repeatedly tested the $0.47 resistance level, signaling a potential breakout. A successful push above this critical level could ignite bullish momentum, with analysts eyeing a potential 40% rally toward $0.63. However, failure to breach this zone could leave the token vulnerable to downward pressure, potentially retesting support near $0.41 or lower.
Active Addresses and Network Engagement Rise
In a positive sign for the network, active addresses have increased by 1.17% in the past 24 hours. This uptick indicates heightened user engagement, often a precursor to growing market momentum. Sustaining this trend could strengthen the case for a bullish breakout, especially if adoption and activity levels continue to rise.
Transaction Activity Signals Adoption
POL’s transaction count has risen by 1.3%, with 2,886 transactions recorded in the past day. This steady increase in network usage underscores growing user participation, which is essential for long-term growth. Consistent transaction activity could provide further support for a breakout above $0.47.
Exchange reserves for POL have dropped by 1.23%, now standing at 56.9 million tokens. This decline suggests accumulation by long-term holders, reducing selling pressure on exchanges. While this trend creates favorable conditions for a price surge, sustained demand will be critical for upward momentum.
Also Read: Polygon’s POL Token Forms Bullish Divergence as Whales Accumulate: Can Price Reclaim $0.69?
With rising user activity and declining exchange reserves bolstering bullish sentiment, Polygon [POL] appears poised for a decisive move. A breakout above $0.47 could pave the way for a rally toward $0.63. However, failure to sustain this level might shift momentum in favor of the bears. Investors should closely monitor the supply zone as the next move could shape POL’s near-term trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
