Polygon (POL) has been experiencing notable bullish momentum recently, with a 17.45% surge over the past month. After hitting a low of $0.28, the altcoin reached a high of $0.47, showing strong upward movement. However, as of now, POL is trading at $0.4348, marking a slight daily increase of 2.89%. Despite this growth, POL remains 66.07% below its all-time high (ATH) of $1.29, which raises concerns about the sustainability of the current uptrend.

A popular crypto analyst, Ali Martinez, believes that Polygon’s ability to maintain its momentum hinges on holding critical support levels around $0.375 and $0.386. If POL can hold these levels, Martinez suggests that the altcoin will likely continue making higher highs, as the resistance in this range is relatively weak. This implies that without strong selling pressure, POL could see significant price gains.

Why $0.37 and $0.38 Are Crucial for POL’s Rally

According to Martinez’s analysis, the $0.375 and $0.386 support levels are vital for the continuation of Polygon’s recent price rise. If these levels hold, Polygon would face minimal resistance and be able to surge higher, as selling pressure at these points is not expected to be significant.

When we talk about weak resistance, it means that, at these levels, the market is unlikely to encounter significant selling from traders or holders, allowing POL to continue its rally. If the token can maintain its price above these supports, it will likely continue to gain until it reaches a point where it encounters stronger resistance.

At the time of writing, POL is trading above these key support levels, indicating that it is currently safe from major selling pressure in the short term. This is a positive sign for bulls, as it suggests that the market remains optimistic and that the price could continue to rise as long as these supports hold.

Technical Indicators Point to Growing Optimism

Polygon’s price chart provides further evidence of the growing bullish sentiment surrounding the token. The Advance Decline Ratio (ADR), a metric that tracks the number of advancing vs. declining tokens, has surpassed 1, reaching a value of 1.47 after a previous dip. When the ADR exceeds 1, it suggests that there is a positive outlook among investors, with more buyers than sellers in the market. This has led to increased buying pressure, which is evident in Polygon’s rising Relative Strength Index (RSI), which moved from 49 to 60. A rising RSI indicates growing buying momentum, as more investors are entering the market.

The combination of a rising ADR and RSI shows that Polygon’s market sentiment is increasingly bullish, with a growing number of buyers willing to accumulate POL. This growing optimism has translated into strong buying activity, particularly among whales.

Whale Accumulation Fuels Further Optimism

Polygon has also seen significant whale activity in recent days. Over the past four days, large holders have accumulated a massive 140 million POL tokens, worth around $56 million. This heavy accumulation from whales further bolsters the bullish sentiment, as it signals that large investors are confident in Polygon’s future growth. When whales buy in large quantities, it typically signals their belief that the price will continue to rise, which can have a positive effect on the token’s price.

This surge in whale activity coincides with an increase in overall buying pressure, reinforcing the idea that confidence in Polygon is rising. The rising accumulation is also reflected in the Market Value to Realized Value (MVRV) long/short ratio, which has increased from -2.37 to -1.25. This improvement in the MVRV ratio suggests that long-term holders of POL are now in profit, further reinforcing the positive sentiment toward the token.

What’s Next for Polygon?

With strong buying activity from both retail investors and large holders, Polygon is in a position to continue its rally. If POL can maintain its support levels at $0.37 and $0.38, it could break through the $0.47 resistance and move towards the next key level around $0.57. The ongoing whale accumulation and positive technical indicators suggest that this is a plausible scenario.

However, market conditions can change quickly, and the price action around these key support levels will be crucial for determining whether Polygon can sustain its rally. If the support levels hold and buying momentum continues, POL may see further gains and eventually reclaim higher price levels.

Conclusion: Polygon’s Bullish Outlook

Polygon’s recent upswing, coupled with rising whale activity and increasing buying pressure, paints a positive picture for its near-term future. The $0.375 and $0.386 support levels are critical for the continuation of this rally. As long as these levels hold, Polygon could continue to rise, with the next major resistance level potentially around $0.57.