Polygon (POL) has shown a substantial increase in staking over the past two days, as close to 8 million tokens worth around $1.26 million have been staked. This shows that the holders are becoming more confident in the network as they are preferring staking over liquidity.
Due to this increase in staking, the total staked amount of the token has increased to around 3.61 million, worth around $0.57 million.
In terms of price movement, the asset has recently tested the price of $0.18 and has now entered a healthy correction phase and is currently consolidating around $0.14.
This correction in price is considered a positive development, particularly with improving sentiment and fundamentals. Market analysts are keeping a keen eye on key demand areas, which can be considered a favorable entry point.
Also Read: Polymarket Shocks Crypto Market with Taker Fees on 15-Minute Trades
Polygon (POL) Nears Wedge Breakout, Bulls Target Upside
However, the crypto analyst, Jonathan Carter, highlighted that the token appears to be exhibiting the initial phases of a potential trend change as the price movement constricts inside a long-term falling wedge pattern over the three-day chart. Such a pattern has been historically linked to a potential bullish turn, as it suggests that the selling pressure has been easing and buyers are entering at lower prices.
Source: X
Based on on-chain actions and technical analysis, there is evidence of an approaching end of the accumulation phase with the start of a momentum shift in favor of the bulls.
A breakout above the declining trendline of resistance would most probably confirm the bulls’ pattern and draw more participants to the market. In case of this breakout, it might initiate a recovery with target prices at $0.21, $0.29, $0.41, $0.52, and eventually $0.73.
Polygon (POL) Chart: EMA Resistance and RSI Shift
Polygon has shown a strong recovery from its December bottom, causing the price to move above the 20-day and 50-day EMAs. The strong recovery has been thwarted by the 100-day EMA in the $0.15-$0.16 region, making it a strong resistance level. The overall market is under pressure to stay below the 200-day EMA.
Source: TradingView
The momentum indicators are also showing the first signs of cooling, especially after the strong relief rally. The RSI has moved to the mid-60s, which is an indication of short-term bullishness, although it has retreated to the middle area.
This is an indication of the loss of upside momentum, which may lead to a period of consolidation. It is important to remain above the 20-day EMA to avoid further retracement to the support area.
Also Read: Polygon (POL) Rallies 25% Weekly as Technical Breakout Signals Trend Recovery
