Polygon (POL) Price Structure Mirrors a 90% Rally Setup — But There’s a Twist

Polygon (POL) price is showing signs of recovery, gaining nearly 13% since February 11th, and its current structure resembles the setup that preceded a 90% rally earlier this year. However, the crucial difference—the 'twist'—is the absence of a complete seller flush. In the previous rally, a single sharp lower low indicated capitulation, but the current dip to the $0.087 support zone was tested twice, suggesting sellers remain active and supply is not fully absorbed.

Derivatives data supports this cautious view: open interest has remained relatively flat, indicating low conviction among leveraged traders, and funding rates are negative, suggesting short positions are building. This contrasts with the January rally when leverage exploded. Furthermore, while whale holdings have increased by about 16% since early February, indicating accumulation, this slow absorption stabilizes the price without forcing the panic selling needed for a clean reversal.

Key price levels will determine the next move. A decisive break above $0.118 would signal that sellers are finally overwhelmed, potentially leading to a significant move toward $0.137 and $0.186. Conversely, a drop below the critical support zone of $0.083-$0.087 would invalidate the current setup and confirm sellers maintain control, potentially leading to declines toward $0.072 or $0.061.

(Source：BeInCrypto)