Since mid-December, Polygon (POL) has remained range-bound between $0.43 and $0.53, signaling a prolonged consolidation phase. According to crypto analyst Ali Martinez, the price has been consistently moving within this tight range, with buyers stepping in near $0.43 and sellers rejecting attempts to breach $0.53.
This behavior highlights market equilibrium, where neither bulls nor bears have gained control. The Bull Bear Power (BBP) indicator, which has hovered close to zero, supports this observation. Short-term bullish spikes have been countered by bearish dips, keeping the price confined within its current channel.
Stochastic RSI Shows High Volatility
The Stochastic RSI has been oscillating between overbought and oversold zones, reflecting short-term volatility rather than sustained trends. Traders have focused on capitalizing on these rapid price swings, with selling pressure intensifying as the RSI approaches 80 and buying pressure emerging near 20.
While this indicates active market participation, it also suggests that a significant breakout may require stronger momentum and a shift in sentiment. For now, the technical indicators show a tug-of-war between bullish and bearish dynamics.
Outlook: Can Polygon Break Above $0.53?
The next key level for POL lies at $0.53, which serves as a critical resistance point. A breakout above this level could signal the end of the consolidation phase and open the door to a potential rally toward $0.64, supported by Fibonacci retracement levels.
However, challenges remain. The MACD currently suggests bearish momentum, and the Stochastic RSI, while showing early bullish signals, remains below 50. Without an uptick in trading volume and a clear shift in sentiment, the price may continue oscillating within the $0.43–$0.53 range.
Also Read: Polygon (POL) Price Analysis: Key Pivot Point Signals Potential 45% Surge—Will Bulls Break $0.60?
A failure to break $0.53 could lead to further consolidation or even a bearish downturn. Traders should watch for volume surges and changes in market dynamics to anticipate the next move for Polygon.
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.
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