Polygon (POL) has been on a remarkable uptrend, marking its fifth day of gains and breaking a prolonged downtrend as ecosystem momentum and NFT demand pick up. According to reports from crypto.news, POL, formerly known as MATIC, surged nearly 20% to reach an intraday high of $0.26. This surge pushed its weekly gains to 34% and marked a 70% rebound from its monthly lows. Its market cap has also crossed the $2 billion mark, standing at around $2.15 billion at the time of writing.
The rally in POL was supported by a sharp rise in trading activity, with the token’s 24-hour volume increasing by 270% to over $340 million. This surge in volume signaled increased buying pressure in the market. Additionally, interest from derivative traders is on the rise, with open interest in POL futures climbing 25% to $107 million in just one day.
The recent price surge in POL seems to be closely tied to the launch of the Agglayer Breakout Program, an initiative by Polygon aimed at incubating high-impact projects that build on Agglayer and Polygon. The program supports early-stage blockchain startups with funding and development resources, while also rewarding POL stakers with token airdrops ranging from 5% to 15% of a project’s token supply from graduating projects.
Two standout projects, Privado ID and Miden, are already preparing their own drops. Privado ID plans to allocate around 5% of its tokens, while Miden intends to airdrop 10% of its tokens to POL stakers.
The uptrend in POL also coincides with an increase in demand for NFTs on Polygon. Recent reports show that NFT sales on Polygon reached $22.1 million in the seven days leading up to April 22, surpassing Ethereum, which brought in $21.8 million during the same period. Polygon also outpaced other platforms in terms of the number of buyers, with 47,592 people purchasing NFTs on the platform over the past week.
On the price analysis front, POL has broken out above the upper trendline of a long-term descending pattern that began in December 2023. This breakout often signals the start of a trend reversal, and the momentum appears to be strong. Additionally, the token formed a golden cross on the daily timeframe, with the 9-day EMA moving above the 20-day EMA for the first time since November 2024. This signal previously preceded a 112% rally in POL, suggesting a potential upside move in the cards.
Momentum indicators are leaning bullish as well, with the Aroon Up at 92.86% and the Aroon Down at 35.71%, indicating clear dominance by buyers. The Supertrend indicator has also flashed a buy signal, with its green support line appearing below the price for the first time since last December.
Analysts have started to set bullish targets for POL, with some suggesting that the token is currently in the third wave of an Elliott Wave pattern. A healthy wave-4 pullback could be on the horizon, with support expected between $0.241 and $0.217.
Overall, the current momentum in POL has sparked optimism among investors, with some predicting a potential return to all-time highs if the token manages to clear the $0.768 mark. However, it is important to note that this article does not represent investment advice and is for educational purposes only.