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On April 25, Polygon’s native token, POL (formerly MATIC), extended its upward momentum, marking the fifth consecutive day of gains. This rally has broken a prolonged downtrend, fueled by growing ecosystem activity and increased demand for NFTs on the Polygon network.

POL Surges by 20% Amid Rising Market Momentum

POL surged nearly 20% to reach an intraday high of $0.26, pushing its weekly gains to an impressive 34%. This marks a significant 70% rebound from its monthly lows. The token’s market capitalization has once again crossed the $2 billion threshold, standing at approximately $2.15 billion at the time of writing.

The rally is supported by a sharp rise in trading activity. POL’s 24-hour trading volume jumped 270%, surpassing $340 million, indicating heightened buying pressure. Additionally, interest from derivative traders is increasing, with open interest in POL futures climbing 25% to $107 million within the last day.

Polygon’s Agglayer Breakout Program Fuels Optimism

One of the key drivers behind this surge is the launch of Polygon’s Agglayer Breakout Program, a new initiative designed to incubate high-impact projects built on the Polygon ecosystem. This program offers funding and development resources to early-stage blockchain startups while directly rewarding POL stakers with token airdrops ranging between 5% and 15% of a project’s token supply upon graduation.

Two standout projects, Privado ID and Miden, have already announced plans for token airdrops. Privado ID will allocate 5% of its tokens to POL stakers, while Miden plans to distribute 10% of its token supply.

Polygon Outpaces Ethereum in NFT Sales

The rally also coincides with a surge in demand for NFTs on the Polygon network. Over the seven days leading up to April 22, NFT sales on Polygon reached $22.1 million, surpassing Ethereum’s $21.8 million during the same period. In terms of the number of buyers, Polygon is outpacing other platforms, with 47,592 buyers recorded in the past week—a 62% increase. Ethereum, by comparison, had 39,498 buyers.

Investor Sentiment and Accumulation Trends

Investor sentiment appears to be turning bullish, as evidenced by a steady increase in wallets holding between 10,000 and 100 million POL tokens. This accumulation trend suggests that whales and mid-sized holders are positioning themselves for further upside.

Technical Analysis: POL Signals a Trend Reversal

On the daily chart, POL has broken out above the upper trendline of a long-term descending pattern that began in December 2023. Breakouts of this nature often signal the start of a trend reversal, and the momentum behind this move looks strong.

Notably, POL has formed a golden cross on the daily timeframe, with the 9-day EMA crossing above the 20-day EMA for the first time since November 2024. Historically, this signal preceded a 112% rally, where POL surged from $0.34 to $0.71 within a month. If this pattern repeats, a similar upside move could be anticipated.

Momentum Indicators Support the Bullish Case

Momentum indicators are also leaning bullish. The Aroon Up indicator is at 92.86%, while the Aroon Down stands at 35.71%, indicating strong buyer dominance. Additionally, the Supertrend indicator has flashed a buy signal, with its green support line appearing below the price for the first time since December 2023.

Analysts Set Bullish Targets for POL

Market analysts have started setting bullish targets for POL. According to technical analysis, the token is currently in the third wave of an Elliott Wave pattern and has just reached the 1.618 Fibonacci extension, which often marks the peak of wave-3. A wave-4 pullback is expected next, with support levels between $0.241 and $0.217.

Some experts, such as Mohamed G. Sewid, believe this rally could mark the beginning of a long-term bull run, potentially ending a three-year corrective wave. As long as the $0.151 low holds, there is optimism that POL could aim for a return to its all-time highs, especially if it clears the $0.768 resistance level.

“This price action could signal the start of a massive bull run for POL, provided key support levels remain intact.”

Disclosure: This article is for educational purposes only and does not constitute investment advice. Always conduct your own research before making financial decisions.

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