Thomas Daniels
Polygon’s native token, POL, has ended a five-month bearish streak, signaling a potential trend reversal as investor optimism grows. On April 25, POL marked its fifth consecutive day of gains, buoyed by renewed ecosystem momentum and heightened NFT demand.
According to data from crypto.news, POL (formerly MATIC) soared nearly 20% intraday, reaching $0.26, and pushing its weekly gains to an impressive 34%. The token has now rebounded 70% from its monthly lows, driving its market capitalization past the $2 billion threshold to approximately $2.15 billion at the time of writing.
The surge has been supported by a notable increase in trading activity. POL’s 24-hour trading volume spiked 270% to over $340 million, reflecting heightened investor interest. Simultaneously, open interest in POL futures climbed 25% to $107 million in just one day, further reinforcing the bullish sentiment.
A significant catalyst behind POL’s resurgence appears to be the launch of the Agglayer Breakout Program—an initiative designed to nurture high-impact blockchain projects on the Polygon ecosystem. The program not only provides funding and development resources to early-stage startups but also incentivizes POL stakers by offering token airdrops. Rewards range between 5% and 15% of a project’s token supply.
Two notable projects, Privado ID and Miden, have already confirmed participation, with Privado ID planning a 5% airdrop and Miden committing 10% to POL stakers.
The rally coincides with Polygon’s growing prominence in the NFT sector. Recent reports show that NFT sales on Polygon totaled $22.1 million during the week ending April 22, surpassing Ethereum’s $21.8 million during the same period. Polygon also led in user activity, recording 47,592 NFT buyers over the week—a 62% increase—compared to Ethereum’s 39,498 buyers, according to CryptoSlam data.
Investor confidence is further reflected in the rising number of wallets holding between 10,000 and 100 million POL tokens, suggesting accumulation among whales and mid-sized investors positioning for potential future gains.
Technical Analysis: Signals Point to a Bullish Continuation
From a technical perspective, POL has decisively broken above the upper trendline of a descending pattern that had been in place since December 2023—a classic indicator of a trend reversal. Importantly, a “golden cross” has formed on the daily chart, with the 9-day EMA crossing above the 20-day EMA for the first time since November 2024. Historically, a similar crossover preceded a 112% rally within one month.
Momentum indicators are currently skewed bullish. The Aroon Up indicator stands at 92.86%, significantly outpacing the Aroon Down at 35.71%, highlighting strong buying momentum. Additionally, the Supertrend indicator has issued a fresh buy signal, with support levels now forming below the current price for the first time since December 2024.
Market analysts have started outlining optimistic scenarios. “Man of Bitcoin” notes that POL has reached the 1.618 Fibonacci extension, a typical peak for wave-3 in an Elliott Wave pattern. A healthy corrective wave-4 pullback could target support between $0.241 and $0.217.
Meanwhile, analyst Mohamed G. Sewid suggests that this move could signal the end of a three-year corrective cycle. Provided the critical $0.151 support holds, he argues, POL could embark on a major bull run with the potential to revisit and surpass its all-time high near $0.768.
As technicals strengthen and fundamental developments accelerate, POL’s recent breakout could mark the beginning of a broader, sustained rally.
