POL price marks its fifth day of gains, breaking a prolonged downtrend as ecosystem momentum and NFT demand picked up

On April 25, POL marked its fifth day of gains, breaking a prolonged downtrend as ecosystem momentum and NFT demand picked up.

On April 25, POL saw its fifth day of gains, breaking a prolonged downtrend as ecosystem momentum and NFT demand picked up.

According to crypto.news, Polygon’s native token, POL (formerly MATIC), surged nearly 20% to an intraday high of $0.26. This pushed weekly gains to 34% and signaled a 70% rebound from its monthly lows. Its market cap has also crossed the $2 billion mark again, standing at around $2.15 billion at the time of writing.

A sharp rise in trading activity backed this rally. POL’s 24-hour volume also shot up 270% to over $340 million, showcasing increased buying pressure. Interest from derivative traders is also heating up, with open interest in POL futures showing a 25% increase to $107 million in the last day alone.

This latest price surge seems closely linked to the launch of the Agglayer Breakout Program, Polygon’s new initiative to incubate high-impact projects that build on Agglayer and Polygon.

The program provides early-stage blockchain startups with funding and development resources. It will also directly reward POL stakers with token airdrops ranging from 5% to 15% of a project’s token.

Two standout projects, Privado ID and Miden, are already preparing their own drops. Privado ID is allocating approximately 5%, and Miden plans to airdrop 10% of its tokens to POL stakers.

This rally also comes amid an uptick in demand for NFTs on Polygon. A recent report from crypto.News showcases that NFT sales on Polygon (POL) reached $22.1 million in the seven days leading up to April 22. This surpasses Ethereum (ETH), which generated $21.8 million during the same period.

As of press time, Polygon is outpacing other platforms in terms of the number of buyers. Over the past week, 47,592 people purchased NFTs on Polygon, showing a strong increment of roughly 62%. In comparison, Ethereum had 39,498 buyers per data from CryptoSlam.

The increasing bullish sentiment among its investors is also apparent in a steady rise in the number of wallets holding between 10,000 and 100 million POL tokens. This suggests whales and mid-sized holders are accumulating, potentially expecting more upside.

POL price analysis

On the daily chart, POL has now broken out above the upper trendline of a long-term descending pattern that began in December 2023. This kind of breakout often signals the start of a trend reversal, and the momentum looks strong.

It has also 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. Back then, this signal flashed just before POL went on a 112% rally within a month, climbing from $0.34 to $0.71. If history repeats itself, a similar upside move could be on the cards.

Momentum indicators are also tilting bullish. The Aroon Up stands at 92.86% while the Aroon Down is at 35.71%, highlighting the strength of 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.

With the current momentum in play, analysts have started to line up bullish targets. For instance, Man of Bitcoin pointed out that POL is currently in the third wave of an Elliott Wave pattern and has just hit the 1.618 Fibonacci extension, a level where wave-3 peaks. A healthy wave-4 pullback could be next, with support expected between $0.241 and $0.217.

Meanwhile, Mohamed G. Sewid believes this bounce might be the beginning of a massive bull run, potentially completing a 3-year corrective wave. As long as the $0.151 low holds, POL could be aiming for a return to all-time highs, especially if it manages to clear the $0.768 mark.