Polygon (POL), formerly MATIC, made headlines last year with an impressive surge from $0.29 to $0.77 between November 5 and December 3. However, the momentum was short-lived, with the cryptocurrency now trading at $0.48, leaving investors questioning its next move.
Whales Accumulate Despite Price Decline
While Polygon’s migration from MATIC to POL on September 4 was expected to trigger bullish sentiment, the market reaction was underwhelming. Prices slid from $0.45 to $0.29 post-migration. Despite this, on-chain data reveals a significant uptick in whale accumulation.
CryptoQuant reports a notable decline in POL’s exchange reserves around the migration period. Addresses holding between 1 million and 10 million POL doubled their holdings, amassing 200 million POL worth approximately $80 million at current prices. This whale activity indicates strong confidence in Polygon’s long-term potential.
Technical Analysis: Falling Wedge Formation
POL has been trading within a falling wedge pattern since February 2023, a formation often seen as bullish. Attempts to break out, including one in March 2023, were unsuccessful. The cryptocurrency now finds support at $0.41, a critical level for a potential rebound.
If $0.41 holds, Polygon could climb to $0.52, its next resistance level, and possibly retest $0.63. However, its price remains closely tied to Ethereum’s performance. A dip below $3,300 for Ethereum could pull Polygon below $0.41.
2025 Price Predictions: A Bullish Outlook
Despite current sluggishness, Polygon’s long-term prospects remain optimistic. AI-based predictions from CoinCodex suggest a price range of $2.68 to $3.13 in 2025, representing over a 500% increase. Near-term targets include $0.51 within the next month and $2 over the coming year, driven by increased adoption and potential market recovery.
Also Read: Polygon [POL] on the Brink: Will a Breakout Above $0.47 Ignite a 40% Rally?
Polygon’s current price action may seem lackluster, but whale accumulation and promising technical indicators point to potential upside. While a push to $1 or $10 might take time, POL remains a cryptocurrency to watch for long-term gains.
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
