Analyst Sets ‘Wild’ Price Target Amid POL’s 38.2% Surge
Polygon (POL) hit a four-month high today after surging 11% daily. The cryptocurrency broke above the $0.60 mark before retracing, sparking bullish sentiment among investors and market watchers. As a result, a prominent cryptocurrency analyst predicts that POL will surge by a whopping 2,500% in the coming months.
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Polygon has had a stellar performance over the past three weeks, rising approximately 107% since November 5 market pump. The price of POL (formerly MATIC) has risen from below the $0.30 mark to a four-month high of $0.61.
Ali Martinez said the performance was driven by a variety of factors that have pushed the coin’s price up nearly 40% in the past seven days and could stage “one of the most nasty rallies.” Share on X.
The analyst explained that Polygon experienced a “massive spike in on-chain metrics” last week, which could drive POL’s price to “crazy” price action in the future.
Martinez noted that many investors held Polygon during the last cycle, which saw the project’s token hit an all-time high (ATH) of $2.92. However, most were in the red as only 15.11% of Polygon holders were in the black.
According to the post, this is a positive sign for POL’s price action as most investors will not sell at the current price range to take profits. The analyst added on the chain Data shows a new wave of investors is preparing for the second phase of the rebound.
This is shown by the recent increase in daily active addresses, transaction volume, and whale activity. POL’s daily trading volume increased by 190% last week, jumping from the $250 million mark to $736 million.
Additionally, whales have purchased over 140 million POL in the past week and a half, currently worth approximately $80 million, with a significant increase in large-scale purchases since November 5.
Will POL hit $15 this cycle?
Martinez said POL’s “technical picture looks very good” as whales buy frantically and selling pressure eases. For him, the cryptocurrency is about to break out of a multi-year descending triangle.
Analysts explained that Polygon has consolidate It has been in a descending triangle pattern since its peak nearly three years ago. About a week ago, the coin “bounced off the x-axis of the triangle” and its Moving Average Convergence/Divergence (MACD) was “on the verge of a bullish crossover.”
This suggests that while overall sentiment remains bearish, “bullish signals are piling up” indicating a possible rally to new highs.
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Based on this, Martinez predicts that a POL breakout could lead to a 2,500% rise in the coming months. He detailed that a weekly close above $0.7973 could trigger a rally to $15.27, adding that it could also trigger a 6,200% rise to $36.17.
The most important wall of support for POL lies in the $0.375 to $0.386 price range, which was breached a week ago with little resistance at higher levels, the analyst added.
As of the time of writing, POL is trading at $0.58, up 75% on the monthly time frame.
Featured image from Unsplash.com, chart from TradingView.com
