Following XRP’s recent upsurge on the news of Donald Trump’s re-election and Chair Gary Gensler’s upcoming January 20 stepping down, POL (ex-MATIC) – formerly Polygon (MATIC) – is among the last major cryptocurrencies to be 40.8% in the red in 2024.
However, one digital assets expert believes POL is merely late to the rally and well-positioned for a massive – possibly 6,000% – rise.
Specifically, cryptocurrency analyst Ali Martinez shared his bull case – or, as he put it, a ‘wild price prediction’ – for the token across several X posts, outlining the asset’s path to between $15.27 and $36.17.
Crypto analyst outlines Polygon’s path to $36
According to Martinez, the setup is positive due to the simple fact that approximately 75% of Polygon holders are ‘out of money’ – they purchased the token at a greater price than the $0.5845 it is valued at at press time on November 25.
This fact alone means that investors are unlikely to try and ‘book profits anytime soon,’ drastically reducing the potential selling pressure.
A lot of investors hold POL from the previous cycle, and nearly all of them are at a loss.
In fact, only 15.11% of Polygon holders are in the green. This is a positive sign for price action because many won’t try to book profits anytime soon.
The expert also explained that recent on-chain metrics, such as the rise in new active addresses, whale activity, and volume, indicate numerous new traders are building their POL positions.
Whales are identified as particularly bullish as they are estimated to have purchased, for example, 140 million POL between November 14 and November 18.
Ultimately, Martinez concluded that between the low danger of significant selling pressure and the bullish indicators emerging from the utility token’s multi-year descending triangle, there is a strong likelihood of a rally toward $36.17 – nearly 6,000% above the press time price.
The final prerequisite Polygon has to meet, according to the analyst, is a sustained close of $0.7973 – a level not seen since April 2024. Still, POL appears poised to reclaim the price level as it has already rallied more than 80% in the last 30 days.
I believe that Polygon consolidates in a multi-year descending triangle, and a weekly close above $0.7973 could trigger a rally to $15.27 or $36.17!
Elsewhere, the on-chain technical expert t warned that despite their confidence in the bullish scenario, maintaining stop loss orders remains important. They added that should POL drop below the critical ‘support wall’ between $0.375 and $0.386, they would themselves exit the trade.
When did MATIC become POL?
It is worth pointing out that Polygon made the transition from MATIC to POL in mid-September and that all holders of the old version of the token have a two-year grace period to exchange their cryptocurrency at a 1:1 ratio.
At the time, Polygon explained that the move was a simple upgrade meant to bring the asset closer to the ultimate vision of it becoming the ‘value layer of the internet.’
At press time, POL and MATIC are trading at almost the exact same price, as could be expected given the guaranteed 1:1 exchange ratio.
Featured image via Shutterstock
Source: https://finbold.com/polygon-set-for-6000-rally-to-36-crypto-expert-reveals/