Key Takeaways
- Polygon’s price has climbed 12% in 7 days, breaking out of consolidation and reclaiming the $0.20.
- The Heimdall v2 hard fork, which reduces finality to ~5 seconds, contributed to the POL price hike.
- The MACD shows a bullish crossover, and the RSI has surged, highlighting strong upward momentum.
Polygon (POL) has gained 12% over the past seven days, reclaiming the $0.20 mark amid a broader altcoin market rally.
This latest rebound also means POL’s price is now up 32% from its all-time low recorded on April 7, marking a notable recovery. But will Polygon’s price continue to rise, considering it has struggled for most of the year?
Let’s find out why it is up double-digits today, and what lies ahead for the price.
Polygon Sees Rare Pump — Why?
Since last Thursday, Polygon’s price has traded in a symmetrical triangle. The altcoin’s value moved sideways during that period, consolidating between $0.16 and $0.18.
But today, POL has broken above the upper trendline of the triangle. This breakout suggests that POL has exited its bearish phase and could be looking to trade at a much higher value.
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To support this point, CCN examined the Chaikin Money Flow (CMF). At press time, the CMF reading on the POL/USD daily chart had risen to 0.05.
This indicates that buying pressure was one of the reasons that the altcoin’s value broke out. In addition to that, Polygon’s price is on the verge of reclaiming the $0.21 support.
If that happens, the cryptocurrency’s pi above the upper-level resistance at $0.23. Like the CMF, the Moving Average Convergence Divergence (MACD) has also formed a bullish crossover to support this bias.
Besides the technical outlook, Polygon’s announcement of the Heimdall v2 upgrade propelled the price hike. According to CEO Sandeep Nailwal, the upgrade, which aims to reduce finality to around five seconds and eliminate legacy technical debt, will be complete on July 10.
“On 10 July, Heimdall finality will lag by ~3 h during the migration window. • A large reorg, while unlikely, is still possible—dApps should bump confirmations to 256 blocks for the day,” Nailwal said after calling it the most complex hard fork since Polygon’s Proof-of-Stake (PoS) migration.
POL Price Analysis: Higher Highs
On the 4-hour chart, the POL/USD chart shows a bullish structure. As seen below, the Awesome Oscillator (AO) is in the positive territory, indicating strong bullish momentum.
Like the AO, the Relative Strength Index (RSI) has risen to 82.48, reinforcing the bullish bias around POL. Should this trend remain the same, Polygon’s price might break the resistance at $0.22.
In that scenario, the cryptocurrency’s market value might rise to $0.26. On the other hand, if momentum turns bearish, this forecast might change.
If that were to happen, POL’s price might decline to $0.18. In a highly bearish case, it could slide to $0.15.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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