• POL has formed a classic inverse head-and-shoulders pattern.
• This bullish outlook is supported by multiple on-chain metrics and technical indicators.

Polygon’s [POL] performance has been impressive. On the monthly timeframe, it has surged 13.93%, while daily gains stood at 5.41%.

If the bullish setup materializes as expected, these gains could extend significantly, bringing POL closer to the $5.6 target.

33% gain with head and shoulders pattern

POL is well-positioned for a potential 33% gain, as the formation of a head-and-shoulders pattern suggested an impending upward movement. This pattern has historically acted as a significant catalyst for price rallies.

For the bullish scenario to materialize, POL must first breach the neckline (resistance level) at 0.4282 and trade above it. Once this key level is surpassed, the asset is likely to continue its ascent.

With a successful breakout, POL could target $0.5652, representing a potential 33.13% gain. At this level, price revaluation will occur, which could either lead to further upward momentum or a potential pullback.

Bullish sentiment for POL

As of writing, the positive Funding Rate of POL showed strong buying activity and pointed to an impending rally. According to Coinglass, the press time Funding Rate was 0.0205%.

The Funding Rate measures the cost of maintaining a balance between an asset’s spot and Futures prices. In this case, the fact that longs are paying shorts indicates that the market sentiment is bullish.

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Author: Olayiwola Dolapo