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Polygon (POL) hit its four-month high today following its 11% daily surge. The cryptocurrency surpassed the $0.60 mark before retracing, sparking a bullish sentiment among investors and market watchers. As a result, a renowned crypto analyst predicted a massive 2,500% rally for POL in the coming months.
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Polygon On-Chain Metrics Turn Bullish
Polygon has seen a remarkable performance over the past three weeks, rising around 107% since the November 5 market pump. POL, previously MATIC, has seen its price move from below the $0.30 mark to a four-month high of $0.61.
This performance has been fueled by several factors, which have propelled the token’s price by nearly 40% in the last seven days and could stage “one of the most hated rallies,” as Ali Martinez shared on X.
The analyst explained that Polygon has been experiencing an “important spike in on-chain metrics” over the last week, which could drive POL’s price to a “wild” price action in the future.
Martinez noted that a lot of investors hold Polygon from the previous cycle, where the project’s token hit its all-time high (ATH) of $2.92. However, most of them record losses since only 15.11% of Polygon holders are in the green.
Per the post, this is a positive sign for POL’s price action, as most of its investors won’t sell for profit at the current price ranges. The analyst added that on-chain data suggests a new wave of investors are positioning themselves for the rally’s second leg.
This was signaled by the recent increase in daily active addresses, transaction volume, and whale activity. POL’s daily trading volume has recorded a 190% increase in the last week, jumping from the $250 million mark to $736 million.
Additionally, whales bought over 140 million POL, now worth around nearly $80 million, in the last week and a half, with large-scale purchases significantly increasing since November 5.
POL To Hit $15 This Cycle?
Martinez suggested that with the whales’ buying spree and the reduced selling pressure, the POL “technicals look very good.” To him, the cryptocurrency is nearing a breakout from a multi-year descending triangle.
The analyst explained that Polygon has been consolidating in a descending triangle formation since hitting its ATH almost three years ago. Nearly a week ago, the token “bounced off the triangle’s x-axis,” and had its Moving average convergence/divergence (MACD) “on the verge of a bullish crossover.”
This suggested that while sentiment remains overall bearish, “bullish signals are piling up,” indicating a potential rally toward a new ATH.
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Based on this, Martinez predicted that POL’s breakout could potentially lead to a 2,500% rally in the coming months. A weekly close above $0.7973 could spark a rally to $15.27, he detailed, adding that it could also ignite a 6,200% jump to $36.17.
The analyst added that the most important support wall for POL was between the $0.375 and $0.386 price range, broken over a week ago, with little resistance in the higher levels.
As of this writing, POL is trading at $0.58, a 75% increase in the monthly timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
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