Polygon (POL) is currently in a significant phase of its price movement, as it consolidates within a descending triangle pattern on the 4-hour chart. The price range between $0.47 and $0.41 has become a critical zone, with both bulls and bears vying for dominance. At the time of writing, POL is trading at $0.4505, showing a marginal 0.02% decline in the last 24 hours. As the price approaches key resistance levels, the question arises: will the bulls break through, or will the bears push the price lower?
Polygon’s Resistance Battle: Is a Breakout Imminent?
Polygon’s price has repeatedly tested the $0.47 resistance level, but has failed to surpass it in the past. However, the bulls are now preparing for another attempt to breach this supply zone. A successful breakout above $0.47 would indicate a shift towards bullish sentiment, potentially triggering a rally towards the next resistance level of $0.63, which would represent a 40% potential price increase from the current level.
On the other hand, if POL fails to sustain above $0.41, it may experience a retracement towards lower support levels. This critical range is crucial in determining whether Polygon will gain upward momentum or face downward pressure.
Technical Indicators Support Bullish Sentiment
The technical indicators currently favor the bulls, with the Relative Strength Index (RSI) indicating bullish momentum. The RSI has been rising, indicating growing buying interest. When combined with the positive trend in other metrics, the outlook for Polygon remains cautiously optimistic.
Active Addresses & Transaction Volumes: Key Metrics for Momentum
One of the most promising signs for the bulls is the increase in active addresses. In the past 24 hours, the number of active addresses has risen by 1.17%, indicating growing user engagement and renewed interest in the Polygon network. A sustained increase in active addresses often correlates with heightened demand and can drive upward price movement.
Additionally, Polygon’s transaction count has also seen a 1.3% increase, reaching a total of 2.886K transactions in the last 24 hours. This uptick reflects ongoing network activity and the growing adoption of the Polygon network. As transaction volumes continue to grow, the probability of a breakout above the $0.47 resistance level increases.
Declining Exchange Reserves Suggest Accumulation
Another crucial factor in this price analysis is the declining exchange reserve for Polygon. Over the past 24 hours, the reserve has decreased by 1.23%, bringing it down to 56.9 million tokens. A declining reserve typically indicates that long-term holders are accumulating tokens, leading to lower selling pressure in the market. This accumulation trend could support a price surge, assuming demand remains strong.
When exchange reserves drop, it generally indicates a reduced availability of tokens for immediate trading. This scarcity, coupled with rising demand, often sets the stage for an upward price movement.
Conclusion: Will Polygon’s Price Break Through or Retreat?
Polygon’s price action is currently at a critical stage. The increasing number of active addresses, rising transaction count, and declining exchange reserves suggest a bullish outlook for the altcoin. If the bulls succeed in breaking through the $0.47 resistance level, a rally towards $0.63 is likely, offering a 40% gain. However, if the bears maintain control and push the price below $0.41, the market could experience a downturn. Traders should closely monitor these key levels, as the next price action will largely determine the short-term trajectory of Polygon (POL).
