- Polygon’s active addresses surged by 426%, signaling growing user engagement and adoption.
- Technical indicators suggest a potential bullish breakout if POL breaks key resistance at $0.5324.
- Increased liquidity and weakened bearish momentum support the likelihood of a trend reversal for POL.
Polygon—POL, saw a massive 426% increase in active addresses last week. This jump signals strong growth in user engagement. Despite a small 1.91% drop in price, trading at $0.4533, signs of a potential breakout are evident. Will POL break through resistance and reverse the downward trend?
Is a Bullish Breakout Coming?
The price chart shows a descending wedge, a typical pattern for bullish reversals. A double bottom near $0.4389 adds extra support, hinting at a price rebound. For a significant rally to happen, POL needs to break the $0.5324 resistance. A steady increase in buying pressure could push the price higher, but POL must maintain this momentum to escape the downtrend.
Network Growth Fuels Adoption
Polygon’s network activity surged, with active addresses rising by 426%. This points to growing user interest. Zero-balance addresses also saw a 1,134.82% increase, showing more engagement across the platform. Although new addresses dropped by 6.83%, the rise in active users suggests increasing adoption. As more users join, upward price movement becomes more likely.
The Relative Strength Index sits at 43.76, approaching oversold territory. This often signals potential price growth. The Directional Movement Index (DMI) shows the bearish trend is weakening. The +DI stands at 14.77, and the -DI is at 25.35. If the +DI crosses above the -DI, a trend reversal could occur.
Exchange netflow recorded an inflow of 449.6175k tokens, a 0.23% rise. This boost in liquidity indicates more trading activity, which could lead to increased market volatility. If this trend continues, POL may break through resistance levels. Polygon’s network growth and key technical signals hint at potential bullish momentum.
