Polygon (POL) Could Stage a “Hated Rally” of 8,216% to $36, Chart Analysis Suggests

While Polygon (POL) has shown a lackluster price trend, technical indicators are hinting at a potential major comeback for the token, according to a leading analyst.

Polygon (POL) price might be lagging behind its major-cap altcoin peers, but technical indicators are hinting at a potential comeback for the token, a leading analyst has claimed.

Despite a broader market rally, Polygon’s (POL) price action has been relatively muted compared to its major-cap altcoin peers. The cryptocurrency saw a 2.73% rise over the last 24 hours, with a 17.41% gain over the week, showcasing a modest upward momentum.

In contrast, other altcoins like Dogecoin (DOGE) and XRP have delivered stronger returns of over 120% during the current rally, leaving Polygon’s performance to raise questions regarding its ability to compete.

However, blockchain analyst Ali Martinez has highlighted potential bullish signals for Polygon, suggesting that a “hated rally” could be on the horizon for the asset.

Technical Indicators Signal Momentum

Martinez’s technical analysis of Polygon’s price action revealed key bullish indicators. The asset’s price recently rebounded from the x-axis of a descending triangle, which is a critical technical level. This pattern suggests a potential rally toward a key resistance level defined by the triangle’s descending trendline. Overcoming this resistance could pave the way for further upward price movement.

I believe #Polygon $POL could stage one of the most hated rallies! While sentiment remains bearish, bullish signals are piling up:

– Price bounced off the triangle's x-axis

– Stoch flipped bullish

– MACD is on the verge of a bullish crossover pic.twitter.com/h9xicj72oa

— Ali (@ali_charts) November 20, 2024

Complementing this pattern, the Stochastic oscillator showed a bullish crossover. Martinez noted that the %K line (blue) crossed above the %D line (orange), indicating increasing buying pressure. This oscillator is often used to identify the early stages of a trend reversal.

Moreover, Polygon’s moving average convergence divergence (MACD) is nearing a bullish crossover, with the MACD line approaching the signal line. A confirmed crossover would signify waning bearish momentum, as evidenced by the histogram bars turning less negative.

Ali’s chart analysis indicated the potential for POL to rally toward a price target of $36. If POL were to reach $36 from its current price of $0.4329, it would denote an approximate gain of 8,216%.

On-Chain Activity Reflects Rising Interest

In addition to these technical observations, Polygon’s on-chain metrics also signaled growing market participation. Two days ago, Martinez highlighted a significant increase in daily active addresses, transaction volume, and whale activity.

These developments indicate heightened interest in Polygon, which could be a precursor to bullish price action.

Potential Price Targets for Polygon Upon Breakout

Previously, Martinez identified a longstanding resistance trendline on the weekly chart that has been limiting Polygon’s growth since its peak in December 2021. If the asset manages to break through this trendline, it could mark a turning point.

The analyst outlined a near-term price target of $0.89, which would represent a 167% gain from the current levels. Additionally, he projected a secondary target of $8, reflecting a potential 2,387% increase.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not necessarily reflect the views of The Crypto Basic. This article is not intended as and does not constitute financial advice. Cryptocurrency is a highly volatile asset and prices can fluctuate drastically in a short period of time. Always conduct your own research, and never invest more than you can afford to lose.