POL has experienced a sustained uptrend over the past week, hiking by 22.24%.
- POL has surged by over 22.24% over the past week. Market fundamentals suggested a potential upsurge to a recent high of $0.45.
After a sustained decline, Polygon [POL] has seen a turn in fortunes over the past month. After hitting a local low of $0.2853, the altcoin experienced a strong upswing.
In fact, as of this writing, Polygon was trading at $0.3868. This marked an 8.0% rise over the past day. Equally, the altcoin has gained by 22.24% on weekly charts, with an extension to this bullish trend of 5.38% on monthly.
This bullishness is further witnessed in the increased trading activities. As such, trading volume has increased by 219.75% in 24 hours.
The current market conditions have left analysts deliberating over POL’s future trajectory. One of them is the popular crypto analyst Man of Bitcoin, who has suggested a potential upside citing wave 5 of the Elliot wave.
Market sentiment
In his analysis, Man of Bitcoin posited that POL has made an impulsive move to the upside.
Source: X
According to him, this move has pushed the altcoin to reach the descending trendline and was now consolidating.
This upswing left the immediate support around $0.377 and $0.348, which could hold to maintain a bullish momentum.
As long as POL holds this level, it could strengthen the altcoin to break out of the descending trendline. A breakout from this level will serve as a clear indication that Wave 5 is developing.
What price charts suggest
While the analysis provided above offers a promising outlook for the altcoin, it’s essential to counter-check other market indicators to determine what they suggest.
Source: Tradingview
Firstly, according to AMBCrypto’s POL was experiencing a strong upward momentum with increased buying activities at press time.
This is evidenced by the fact that Polygon’s Directional Movement Index (DMI) has seen a rise in +DI. At the time of writing, +DI was at 35 while ADX was at 34.
Additionally, Polygon’s Relative Strength Index had risen from 24 to 63. The surge in RSI showed that there was higher buying pressure compared to selling.
Source: Coinglass
This means the surge in trading activity witnessed over the past day is mainly buyers.
Source: Santiment
Finally, Polygon’s Whale transaction count (100k>) has remained relatively high, reaching 27 transactions to peal at 19 at press time. This showed increased accumulation by large holders.
Simply put, POL was currently experiencing a strong upward momentum and favorable market conditions. If these conditions hold, POL’s daily candlestick will close around $0.4.
A close above this level will strengthen POL to reach $0.45 in the short term.
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