Polygon Flashes Bullish Divergence, POL Eyes On 35% Rally

Key Insights:

• POL has ended its prolonged bearish trend and is now poised for a 35% rally.
• Polygon appears to be forming a bullish double-bottom pattern, while the RSI is making higher highs, indicating a potential bullish divergence.
• In addition, on the daily timeframe, POL has broken out of a descending trendline that had provided prolonged resistance to the asset.

With impressive upside momentum in recent days, Polygon (POL) has ended its prolonged bearish trend and is now poised for a strong upward move.

All thanks to Bitcoin (BTC) and other major crypto assets, which have recorded significant gains and are positively influencing the overall cryptocurrency market.

Polygon (POL) Price and Current Market Sentiment

Besides the shift in the overall cryptocurrency market, another potential reason behind POL’s upside momentum is the announcement of the Heimdall V2 upgrade.

According to recent data, POL has recorded an impressive uptick of over 15% following the announcement. At press time, the asset has continued to maintain its upward momentum. POL was trading at $0.209 at press time, having recorded a price surge of over 3.50% in the past 24 hours.

During this period, investor and trader participation also skyrocketed. That resulted in an impressive 24% increase in trading volume.

Polygon Price Action and Key Levels to Watch

According to expert technical analysis, POL appears bullish as it has formed two bullish price action patterns, one on the daily timeframe and another on the weekly timeframe.

On the daily timeframe, POL has broken out of a prolonged descending trendline and consolidation zone. Moreover, it has also closed a daily candle above this breakout level, confirming a successful breakout.

On the weekly timeframe, POL appears to be forming a bullish double-bottom price action pattern. In addition, the chart also displays a bullish divergence, suggesting the asset’s potential for further upside momentum.

When examining both patterns closely, it appears that Polygon is turning bullish and is on the verge of a significant upward move.

POL Price Prediction

Based on recent price action and historical patterns, if POL maintains its upward momentum and holds above the $0.19 level, it could soar by 37%. If this scenario plays out, POL may reach the $0.28 level in the near future.

On the other hand, if the upward momentum fails to sustain, the asset could either move sideways or experience a potential price decline.

At press time, POL was trading below the 200-day Exponential Moving Average (EMA) on the daily timeframe, indicating it was still in a downtrend.

Whereas, the crypto asset’s Relative Strength Index (RSI) stood at 59. It indicated neutral-to-bullish momentum and got enough room for further upside before entering overbought territory.

Traders’ Interest Moves towards Long Positions

Given the current market sentiment, traders have shown strong interest on the bullish side. They are heavily favoring long positions, according to data from the on-chain analytics firm Coinglass.

The data reveals that traders are currently over-leveraged at $0.198 on the lower side (where strong interest is evident) and $0.2136 on the upper side (where interest appears to be weaker). At these levels, traders have built $1.46 million worth of long positions and $907.38K worth of short positions.

This metric suggests that bulls are currently dominating, pushing Polygon price to recover from recent losses. In the coming days, POL may face resistance near the $0.2136 level. If this level is breached, the asset could see a smooth continuation of its upward momentum.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.