Key Insights:
- POL has broken out of a multi-month descending channel, signaling a potential midterm trend reversal.
- Whale accumulation on POL has increased, with multiple purchases above 1.4% recorded in recent sessions.
- Technical breakout above $0.38 positions POL for a possible move toward the $0.52 resistance zone.
Polygon native token, POL, has recently broken out of a descending channel pattern that has been in place for quite some time now. Consequently, this has attracted the attention of traders tracking midterm movements.
Price action and whale activity suggest key developments that may influence the next directional move.
Polygon price prediction: Breakout Above Descending Channel
On Polygon price prediction, the crypto has crossed above the upper trendline of a descending channel that has been in place for several months.
This technical pattern had earlier helped navigate the token in a bearish trend, whereby the token had lower highs and lower lows. A breakout above such a channel often signals a structural change.
Moreover, it is backed by an extension of the price above the upper trendline with moderate volumes. The price recently broke the $0.20 level, an important area at the top of the channel.
This breach created the potential for a new midterm trend higher if the price can hold above this breakout zone.
However, failure to maintain support above the former channel could signal a false breakout, prompting caution among short-term traders.
Whale Accumulation Activity Adds to Bullish Setup
Recent whale activity around POL has introduced further interest in the ongoing setup. As noted by Andrew Griffiths, a series of large transactions has taken place in a short period.
Furthermore, there were four consecutive purchases by a whale, each of which showed inflows of more than 1.4% in volume. This behavior often indicates accumulation from entities with substantial holdings.
Notably, such accumulation usually happens when these big players expect the prices to move in their direction or if they consider the current prices to be low.
These whale entries occurred after a local low in the price and during the breakout phase, meaning there could be a link between on-chain accumulation and technical indicators.
However, this has only been in the last quarter, and its sustainability will depend on the follow-up inflows and general market sentiment.
Key Resistance Zones and $0.52 Target in Focus
A crypto analyst, Whales Crypto, stated that the POL is trading in a descending channel and has successfully broken out from it to higher resistance levels.
Analyzing the visible range volume profiles and the previous price reactions to form the next target, it seemed to be at $0.52.
Notably, this level corresponded to a high-volume node and a previous resistance level in price that was rejected in previous trading cycles. Another attempt toward this area would mean sustaining the purchasing pressure and support of the breakout level around $0.38.
Besides, the current trend is also better aligned with the current structural form. The volume activity on the right side of the chart indicated that there is a higher interest in the price range of $0.35 to $.42, considered as a demand area.
If the price stays above this range, the traders may expect the continuation of the movement in the direction of the closest level of liquidity slightly below $0.55.
Price Monitoring and Breakout Confirmation
Further on Polygon price prediction, an analyst from CryptoJobs suggested a potential bullish continuation pattern forming on the POL/USDT 4-hour chart, with the price respecting a key support zone around $0.2115.
This level aligned with the 50% Fibonacci retracement on the daily timeframe, serving as a major pivot.
Additionally, the chart outlined a possible cup-and-handle formation, often viewed as a bullish reversal structure. After an initial dip and recovery forming the cup, the handle appeared to be developing through a downward-sloping consolidation. This setup may lead to a breakout if the $0.2115 support holds firm and buyers regain control.
Furthermore, the chart supported the narrative of a cup-and-handle breakout setup. If POL maintains momentum above the highlighted green zone and breaks the handle resistance near $0.225, the next target may approach the upper trendline or beyond, possibly testing the $0.27 and $0.30 levels.
However, a breach below $0.2115 could invalidate the setup, returning POL to the prior accumulation range.