Polygon (POL) Price Jumps 10%: Can the Rally Last?
Polygon (POL) Sees Renewed Buying Interest
Polygon's POL token experienced a significant surge, jumping 10.75% amid signs of recovering demand. The altcoin has been trading within an ascending channel since hitting a local bottom of $0.19 five days ago, reaching a high of $0.2369. At the time of writing, Polygon was trading around $0.2367, with its market cap increasing by 9.63% to $2.48 billion.
Key Indicators of Demand Recovery
The price recovery coincides with a noticeable return of buyers to the market. On July 7th, Polygon saw 16.55 million tokens in Buy Volume compared to 15.76 million in Sell Volume, according to Coinalyze. This resulted in a positive Buy Sell Delta of 792.6K, indicating aggressive spot accumulation.
Derivatives Market Signals Bullish Sentiment
The derivatives market reflects increased investor activity, with Polygon’s Open Interest (OI) rising by 13.22% to $118.76 million. Volume also increased by 1.34% to $165.11 million, according to CoinGlass. This capital inflow appears to favor long positions, as Polygon’s Long Short Ratio rose to 1.04, with longs accounting for 51% and shorts for 48%.
Profit-Taking: A Potential Headwind
Despite the bullish indicators, profit-taking activity could threaten Polygon's uptrend. CoinGlass data shows Polygon’s Spot Netflow turning positive, indicating higher inflows relative to outflows. As of this writing, the altcoin’s Netflow was $602k, suggesting increased selling pressure.
Technical Analysis and Price Targets
AMBCrypto’s analysis reveals a strong upswing supported by technical indicators. The Relative Strength Index (RSI) made a bullish crossover, reaching 59 at press time. Similarly, the Positive Index of the Directional Movement Index (DMI) jumped to 26, signaling strengthening upward momentum.
If buyers maintain momentum and absorb the rising sell pressure, Polygon could reclaim $0.24 and target the next significant resistance at $0.255. However, failure to absorb profit-taking could lead to a retrace to $0.207.