- Polygon’s freshly revamped native token gets a 40% boost in two weeks.
- Unseen since April 1, the $1 goal for MATIC now relies on “disbelief rally”.
- CoinGlass data uncovers the short-selling pressure on Polygon (MATIC).
The recently revamped Polygon blockchain has notably lagged behind other major-cap altcoins in the recent rally. Infused with crypto-friendly results of the United States Presidential elections, this bull run has produced multiple all-time highs for Bitcoin (BTC), but the flagship digital asset wasn’t the only one sparking up solid gains.
Most blue-chip altcoins like Hedera Hashgraph (HBAR), Stellar (XLM) and Ripple (XRP) tacked on triple digit upswings to claim new quarterly price peaks. In contrast, Polygon’s native crypto MATIC faced a few months of turbulence coming into this bull run and picked up smaller gains.
Disbelief In MATIC To Bear Fruit In POL Rally?
With a 40% uptick in 14 days, Polygon’s POL token burst out into a new monthly peak at $0.46, but got rejected to $0.43 before hitting the $0.50 resistance barrier. The Layer-2’s native altcoin is still a distance away from the three-month peak of $0.5777, scored on August 25, 2024.
On top of that, the recent Polygon (MATIC) breakout serves as a favorable condition for a “disbelief rally”, as noted by the seasoned crypto analyst Ali Martinez. Simply put, “disbelief rallies” occur when the majority of token holders are still in the red, in which case skepticism thrives.
The situation comes as Polygon (MATIC) is still 66% away from its all-time high, scored on March 13, 2024. The $1.29 pinnacle might be hard to reclaim, as the refurbished POL coin witnesses 9 resistance levels, with just 9% of MATIC holders at profit after the correction to slightly below $0.43.
Are Bullish Signs Really Pilling Up On POL?
As Polygon’s native POL crypto bumps into a phased consolidation, there’s two on-chain signals that flipped bullish recently. In a follow-up analysis, crypto pundit Ali Martinez declared Polygon to be ready for one of the “most hated rallies” in crypto, naming the Stochastic Relative Strength Index (StochRSI) and the Moving Average Convergence Divergence (MACD) as key arguments.
Upon further research by DailyCoin, it was established that the StochRSI dwells between 13.86 and 12.43 on the 4-hour charts, solidifying the pro analyst’s stance on Polygon (MATIC). However, leveraged crypto traders tend to mostly short the POL token, according to CoinGlass data. In the latest 24-hour window, the long versus short ratio has turned to 0.89, with longs taking up 90% of Polygon (MATIC) liquidations on Derivatives markets.
On The Flipside
- Contrary to other major-cap altcoins, Polygon’s native crypto POL a.k.a. MATIC is 47% down by Year-to-Date (YTD) measurements.
- Polygon L2’s DeFi ecosystem’s total value locked (TVL) is at $1.01b, over 9 times less than the all-time record hit three years ago.
Why This Matters
Trader psychology tends to play a pivotal part in the market, while technical metrics provide a level-headed perspective on the altcoin’s price fluctuations.
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