Polygon (POL) has recently experienced a significant price rally, captivating investors with a notable 10.75% surge. This uptrend is largely fueled by a resurgence in demand across both spot and derivatives markets, leading to optimistic projections for the altcoin's future. However, the sustainability of this momentum hinges on its ability to withstand emerging profit-taking pressures.
The Resurgence of Demand Fueling Polygon's Rally
POL's impressive 10.75% gain over the past 24 hours reflects a strong resurgence in investor interest. Data indicates a clear recovery in spot demand, with buy volumes significantly outweighing sell volumes, signaling aggressive accumulation by buyers. This positive sentiment extends to the derivatives market, where Polygon's Open Interest has seen a substantial jump, accompanied by a higher demand for long positions. This confluence of increased buying activity across different markets suggests a robust capital inflow into the altcoin.
Navigating Profit-Taking and Price Trajectories
Despite the strong bullish indicators, a significant challenge arises from profit-taking. As POL's price climbed from its recent lows, many long-term holders, previously "underwater," began cashing out, leading to a surge in exchange inflows. Historically, such aggressive profit-taking can exert downward pressure. Nevertheless, technical indicators like the Relative Strength Index (RSI) and Directional Movement Index (DMI) currently signal strengthening upward momentum, suggesting buyers are largely in control. The critical question remains whether buyers can absorb this selling pressure. Should they succeed, POL could target $0.255; however, a failure to do so might see a retrace to $0.207.
