Polygon rises 13%: Key levels to watch

Polygon is up 13% since Feb 11, with bullish signals and whale accumulation. However, selling pressure remains, making $0.11 resistance and $0.083–$0.087 support crucial for the next move.

Polygon (POL) has rebounded nearly 13% since February 11, consolidating around $0.095 after a period of sustained selling. Technical indicators, such as a bullish divergence between price and RSI, suggest a potential trend reversal. Notably, large holders have increased their POL holdings by 16%, accumulating 90 million tokens between February 10 and 13. Despite these positive signals, the current market structure differs from the previous 90% rally earlier this year. There has been no clear capitulation from sellers, and derivatives data shows low open interest and persistent short positions, indicating ongoing selling pressure. The price has repeatedly tested the $0.087 support, forming a 'lower-low zone' rather than a solid bottom. While the Smart Money Index reflects patterns seen in December's rally, the lack of a full seller flush and incomplete supply absorption point to fragile market sentiment. Key levels to watch are $0.11 as resistance and $0.083–$0.087 as support, which will likely determine Polygon's next direction.