Assessing the possibility of POL's price surpassing $0.255 in the future
Polygon, the popular Ethereum Layer-2 scaling solution, has seen a significant uptrend in recent days, with the altcoin recording a positive Buy Sell Dela of 792.6K, a clear sign of aggressive spot accumulation.
At the time of writing, Polygon (POL) is trading around $0.2367, marking a 10.75% increase over the past 24 hours. The altcoin has been trading within an ascending channel since hitting a local bottom of $0.19 five days ago.
The Positive Index of Directional Movement Index (DMI) for Polygon jumped to 26, signalling strengthening upward momentum. Moreover, Polygon's Spot Netflow, as of writing, stands at $602k, indicating higher inflows relative to outflows.
The altcoin's Relative Strength Index (RSI) made a bullish crossover, reaching 59, at press time. This technical indicator shows moderate bullish pressure, with the RSI around a neutral to slightly bullish level.
These bullish sentiments are supported by a growing adoption of Polygon as a scalability and cost-reduction tool for Ethereum transactions, attracting developers and users. Analyst forecasts also anticipate price increases toward $0.25 to $1.57 in 2025.
However, profit-taking risks exist, especially considering competitive pressures and possible reduced demand if Ethereum 2.0 sufficiently addresses scalability natively. On 7th July, Polygon saw 16.55 million tokens in Buy Volume compared to 15.76 million in Sell Volume. If buyers fail to absorb the rising sell pressure, Polygon will retrace to $0.207.
Polygon's Open Interest (OI) jumped 13.22% to $118.76 million while volume rose 1.34% to $165.11 million. Over the same period, Polygon's market cap jumped 9.63% to $2.48 billion. Unsurprisingly, as the price jumped from the recent bottom, holders who have held underwater decided to cash out. Polygon's Long Short Ratio rose to 1.04, with longs accounting for 51% and shorts accounting for 48%.
In summary, Polygon's growth outlook is fundamentally supported by use-case strength and favourable adoption trends. However, it remains sensitive to broader Ethereum ecosystem developments and competitive risks. Profit-taking could pose a near-term price drag, especially if key resistance levels around $0.25 to $0.78 are tested but not decisively broken. If buyers maintain the pace and absorb rising sell pressure, Polygon will reclaim $0.24 and target the next significant resistance at $0.255.
- The surge in Polygon's spot netflow to $602k and the increasing buying volume of Eth (16.55 million tokens) over selling volume (15.76 million tokens) indicate a strong interest in crypto investing in Polygon, highlighting its potential for growth.
- As Polygon's price jumps and approaches major resistance levels, it's crucial to consider the impact of technology advancements in the Ethereum ecosystem and the competition from other crypto assets when making investing decisions.
- The combined momentum of Polygon's bullish technical indicators, including a DMI of 26, a bullish RSI crossover, and a rising long short ratio, suggests that investing in Polygon may offer attractive returns, especially if buyers manage to absorb the rising sell pressure.
