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Polygon (POL) is positioning itself for an impressive breakout, potentially targeting $5.6, backed by a solid inverse head-and-shoulders pattern.
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This bullish formation in the charts is complemented by robust on-chain metrics, indicating strong market support and buying activity.
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“If the bullish setup materializes as expected, these gains could extend significantly, bringing POL closer to the $5.6 target,” notes an analyst from COINOTAG.
Discover how Polygon (POL) is set for a breakout to $5.6, driven by strong on-chain metrics and a bullish technical pattern.
33% Gain Expected from Head and Shoulders Pattern
Polygon’s recent performance has shown a promising trajectory, with analysts observing a classic head-and-shoulders pattern. This setup often precedes significant price rallies. Historical data supports this, as similar patterns in the past have led to bullish trends.
To sustain this bullish outlook, POL needs to convincingly break through the neckline resistance at 0.4282. A successful breach would likely trigger strong buying momentum, pushing the price toward the anticipated targets.
Source: TradingView
If POL manages to break out effectively, the next target is projected at $0.5652, representing a potential 33.13% gain. Achieving this price point will be critical for consolidating any new upward momentum while determining future market trends.
Bullish Market Sentiment for POL
The current funding rate for Polygon reveals a strong bullish sentiment among traders. As noted by Coinglass, the funding rate at press time was recorded at 0.0205%, signaling a marketplace where long positions are outpacing shorts, indicative of growing investor confidence.
This funding rate reflects the differential costs between the asset’s spot price and futures prices, underscoring how the demand for long positions contributes to the positive market outlook.
Source: Coinglass
Moreover, Open Interest has increased by 7.30%, reaching $96.62 million. This rise denotes that bullish traders hold the majority of unsettled contracts, which further strengthens the case for POL’s potential upswing.
Additionally, market volume has surged significantly, rising by 98.12% to $606.64 million. Such a spike in trading activity points to an energized market where bullish sentiment is prevailing.
Technical Indicators Reinforcing Bullish Sentiment
Technical indicators further bolster the bullish narrative for Polygon. The Balance of Power (BoP), which tracks the buying vs. selling pressure, currently shows a reading of 0.41. This suggests that buyers are currently in control, setting the stage for possible price increases.
Similarly, the Relative Strength Index (RSI) indicates the asset is in a favorable position with a reading of 66.13. This suggests there is room for further upside, as the asset is not yet overbought, and momentum may continue to carry POL upwards.
Source: TradingView
As these technical indicators align with the positive on-chain metrics, the outlook for POL appears favorable. If current trends continue, we may anticipate substantial market movements in the upcoming weeks.
Conclusion
The overall outlook for Polygon (POL) is distinctly bullish, driven by a combination of technical patterns, favorable market sentiment, and strong on-chain metrics. As the market landscape evolves, investors should closely monitor these indicators to assess their strategies. Should POL successfully breakout past key levels, significant upside potential remains, reinforcing its place in the market.
