Home Altcoins News Polygon Price Breakout: Bulls Eye $0.63 Resistance Level

Polygon Price Breakout: Bulls Eye $0.63 Resistance Level

Polygon price prediction

Polygon (POL) is currently at a pivotal point in its price action, 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 battling for dominance. At the time of writing, POL is trading at $0.4505, showing a slight 0.02% dip in the last 24 hours. With the price approaching key resistance levels, the question remains: 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 been testing the $0.47 resistance level multiple times, failing to break above it in the past. However, the bulls are now gearing up for another attempt to breach this supply zone. A successful breakout above $0.47 would signal a bullish shift, potentially fueling a rally toward the next resistance level of $0.63, marking a 40% potential price increase from the current level.

On the other hand, if POL fails to maintain above $0.41, it may face a retracement toward lower support levels. This critical range is pivotal in determining whether Polygon will experience upward momentum or face downward pressure.

Technical Indicators Support Bullish Sentiment

The technical indicators currently favor the bulls, with the Relative Strength Index (RSI) showing bullish momentum. The RSI has been climbing, 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%, signaling growing user engagement and renewed interest in the Polygon network. A sustained increase in active addresses often correlates with heightened demand and, in turn, 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 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 dropped 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 reflects reduced availability of tokens for immediate trading. This lack of supply, combined 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 in a crucial stage. The rising number of active addresses, increasing 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 toward $0.63 is likely, offering a 40% gain. However, if the bears manage to maintain control and push the price below $0.41, the market could experience a downturn. Traders should monitor these key levels closely, as the next price action will largely determine the short-term trajectory of Polygon (POL).

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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