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Polygon (POL) continues to capture attention with a robust upward trajectory, despite facing selling pressure in spot markets.
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The recent performance of POL has seen a significant rise characterized by a series of bullish indicators and a strong accumulation phase.
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“Given the technical chart formations, it appears POL is poised for further gains,” remarked a COINOTAG analyst.
Explore how Polygon’s bullish trend is shaping up amid selling pressures, market sentiments, and derivative trading dynamics.
Strong Accumulation Phase Indicates Future Growth for POL
The recent data reveals that Polygon is currently in a favorable accumulation phase, indicated by the symmetrical triangle pattern forming on the charts. This pattern typically signifies a consolidation before a possible breakout. Over the last month, POL has gained an impressive 66.28%, marking it as a standout asset within the cryptocurrency landscape.
Market Sentiment Remains Favorable Despite Spot Selling
Analysis shows that even as spot traders exhibit signs of offloading their POL holdings, derivative traders maintain a bullish sentiment. Recent metrics from Coinglass reveal that Open Interest has surged by 1.82%, reaching $115.87 million. This increase suggests that institutional and retail investors are positioning themselves for further growth, as seen in recent spikes in long positions.
Spot Trading Activity Raises Questions on Sustainability
Despite the bullish sentiment in derivatives, recent trends indicate that spot traders have begun to offload their holdings. This activity has raised concerns about the sustainability of POL’s upward movement. The Exchange Netflow metric reported an outflow of $4.1 million worth of POL to exchanges within the last 24 hours, suggesting traders are preparing for potential sell actions.
Source: Coinglass
The Path Ahead: Expectations for POL Price Movements
In light of the current market dynamics, analysts predict that POL may experience a minor pullback before it resumes its upward trajectory. The key support level is identified at 0.5478, which if breached, could lead to a further decline to 0.5347. However, should POL stabilize around these levels, a rebound is anticipated, potentially driving the price to a target of 0.6127.
Source: TradingView
Conclusion
In conclusion, while Polygon (POL) is currently navigating some selling pressure from spot traders, the overall sentiment remains bullish thanks to the strong participation from derivative traders. The ongoing accumulation phase, combined with the recent growth in Open Interest, provides a solid foundation for potential future price gains. Traders and investors should monitor key support levels closely to gauge the asset’s next movements.
