The Polygon [POL] (previously MATIC) token has gained 15% in three days.

The Polygon [POL] (previously MATIC) token has gained 15% in three days. Its short-term momentum and a nearly 40% increase in daily trading volume were good signals

The Polygon [POL] token, previously known as MATIC, has experienced a 15% gain in three days. This short-term momentum, along with a nearly 40% increase in daily trading volume, could be good signals for traders operating on lower timeframes.

However, it’s crucial to note that the token is still in a bear market on higher timeframes, and swing traders, as well as POL investors, should be wary of seller dominance in the coming days and weeks.

POL Shows Mixed Signals Across Timeframes- Bulls Remain Cautious

Image: POL/USDT on TradingView

In the early part of the year, Polygon was trading inside a descending channel. In late February, it dipped below the prior lows, which accelerated the ongoing downtrend. As the daily chart shows, this decline has yet to reverse.

Key swing levels on the weekly chart are at $0.285 and $0.77. At the time of writing, POL was trading below these levels, which reflects a bearish market structure on both the daily and weekly timeframes.

Despite this, there are some technical indicators that suggest brewing bullish momentum. Over the past ten days, the OBV has been steadily climbing, which is a good indication of increasing buying pressure.

Similarly, the RSI was moving toward the neutral 50 level, which could indicate a potential shift in momentum on the 1-day chart.

However, the $0.285-$0.3 zone is likely to provide strong resistance. If demand continues to weaken in the coming days, then the probability of breaking above $0.3 seems low.

On the 4-hour chart, the short-term bullish momentum was quite evident. The RSI shot higher into the overbought territory, reaching 84 at press time.

The price broke above the local resistance zone at $0.22, which is highlighted in orange. At the same time, the OBV reached a higher high compared to the past two weeks.

The strong gains over the past 2.5 days gave POL a bullish structure on the H4 timeframe. However, the overall trend remains bearish, as indicated by the Fibonacci retracement levels.

A move above $0.26 could shift the H4 swing structure to bullish, although the $0.265 and $0.285 levels are still important resistance points.

Therefore, bulls should be cautious about jumping into long trades amid the current momentum. Instead, they may want to observe POL’s reaction at key resistance levels around $0.26 and $0.285 to determine whether a bearish reversal is likely.