Polygon [POL] has responded positively on the $0.1 psychological demand zone. It examined this space firstly of January after which once more over the weekend, bouncing 15.25% on Monday, the 2nd of January.
This response was encouraging, however it doesn’t outweigh the longer-time period downtrend of POL. The rally in January got here alongside a formidable milestone POL burn of three million tokens in a single day.
The robust burn rate continued all through the month. AMBCrypto reported that 25.7 million POL was burned, one of many largest month-to-month burns.
But, the broader market worry as a result of promoting strain on Bitcoin [BTC] didn’t bode effectively for Polygon bulls.
Is POL bullish or bearish?
Supply: POL/USDT on TradingView
On the weekly timeframe, stretching again to December 2024, the altcoin’s pattern has been bearish. On the day by day chart above, we are able to see that it’s neither bullish nor bearish.
As a substitute, it appears constrained throughout the $0.10 and $0.18 ranges, forming a variety.
For the second time in simply over a month, the $0.0987 low was examined and held. The OBV didn’t make new lows both, displaying an equilibrium between promote and purchase strain.
The present bounce got here alongside a BTC bounce to $79k on Monday. It’s secure to say that Bitcoin can have a serious affect on POL worth traits and will resolve its subsequent impulse transfer.
Assessing the potential of a POL bounce
Supply: POL/USDT on TradingView
The $0.1325 was a assist stage of some significance in latest weeks. The $0.13 provide zone, highlighted in pink, was additionally a brief-time period space that would see a response from the bears.
Due to this fact, there’s potential that the present POL bounce would lengthen to $0.1325.
Can it lengthen the beneficial properties? As issues stand, this appears unlikely. Bitcoin has a bearish brief-time period bias till the $79.4k native resistance is breached.
Merchants name to motion – Wait
Lengthy-time period traders can be inspired by the protection of the $0.1 psychological assist, however it’s too early to name for a restoration. Swing merchants can control the $0.13 provide zone.
A bearish response can be a promoting alternative. A reclaim of this stage may see a rally towards $0.186.
Ultimate Ideas
- POL has been oscillating between $0.10 and $0.18 in latest weeks.
- Until Bitcoin climbs again above the native resistance, a POL breakout past $0.12 and $0.1325 can be unlikely.
Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
