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Polygon (POL) stock hit a four-month high today after a daily rise of 11%. The cryptocurrency crossed the $0.60 mark before pulling back, sparking bullish sentiment among investors and market watchers. As a result, one famous cryptocurrency analyst predicted a massive 2,500% rise for POL in the coming months.
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The polygon metrics on the chain turn to the upside
Polygon stock has seen remarkable performance over the past three weeks, rising about 107% since the market hit on November 5. POL, formerly known as MATIC, saw its price move from below $0.30 to a four-month high of $0.61.
This performance was driven by several factors, which pushed the price of the token by about 40% in the past seven days and could see “one of the most hated rallies,” said Ali Martinez. Subscribed to X.
The analyst explained that Polygon saw a “significant spike in on-chain metrics” over the past week, which could push POL’s price into “wild” price action in the future.
Martinez noted that a lot of investors are holding on to Polygon from the previous cycle, as the project’s token reached an all-time high (ATH) of $2.92. However, most of them are posting losses as only 15.11% of Polygon holders are in the green.
According to this post, this is a positive sign for POL price movement, as most investors will not sell for profit at the current price ranges. The analyst added that on-chain data indicates that a new wave of investors is preparing for the second leg of the rise.
This is indicated by the recent increase in daily active addresses, transaction volume, and whale activity. POL’s daily trading volume registered a 190% increase last week, jumping from the $250 million mark to $736 million.
Additionally, whales have purchased more than 140 million POL, now worth about $80 million, in the past week and a half, with a significant increase in large-scale purchases since November 5.
POL to $15 for this course?
Martinez noted that with whale buying spree and low selling pressure, “technical indicators are looking very good” for POL. According to him, the cryptocurrency is close to breaking out of a multi-year descending triangle.
The analyst explained that Polygon has been consolidating in a descending triangle formation since it reached ATH nearly three years ago. Nearly a week ago, the token bounced off the x-axis of the triangle, and the Moving Average Convergence/Divergence (MACD) was “on the verge of a bullish crossover.”
This suggests that although sentiment remains generally bearish, “bullish signals are accumulating”, indicating a potential rally towards a new ATH.
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Based on this, Martinez expects the POL breakout to lead to a 2,500% rally in the coming months. A weekly close above $0.7973 could trigger a rally to $15.27, he explained, adding that it could also trigger a 6,200% jump to $36.17.
The analyst added that the most important support wall for POL was between the $0.375 and $0.386 price range, which was broken over a week ago, with little resistance at higher levels.
As of this writing, POL is trading at $0.58, an increase of 75% on the monthly time frame.
Featured image from Unsplash.com, chart from TradingView.com