What’s behind the rise in Polygon (POL) price?

Polygon (POL), previously Polygon (MATIC), has been soaring since hitting a monthly low of $0.1533 on April 7, marking an impressive 63.32% climb to an intraday high of $0.2519 on Binance despite enduring a substantial 64% decline over the past year.

This price surge has sparked curiosity about the forces behind this remarkable recovery, as holders and trader speculate how far it could rise.

Why is Polygon price is rising?

The momentum behind Polygon’s price surge stems from the innovative Agglayer Breakout Program, which nurtures high-potential projects on the Polygon Proof-of-Stake network by offering incubation, funding, and resources, while simultaneously rewarding POL stakers with valuable airdrops from thriving initiatives like Privado ID and Miden.

Notably, Polygon’s shift from MATIC to POL has sparked renewed optimism, showcasing Polygon’s commitment to enhancing its ecosystem with POL’s role in staking and governance making it a more integral part of the network’s operations.

The introduction of the Agglayer Breakout Program, harnessing zero-knowledge proofs to seamlessly connect liquidity and user bases across diverse networks, elevates Polygon’s appeal as a cutting-edge solution, driving further adoption and value for POL.

Complementing this, an explosion in stablecoin transactions—totaling $236 million over nine months, with a peak of $90.7 million in March—demonstrates Polygon’s growing role as a hub for efficient, scalable blockchain activity, bolstering confidence in its ecosystem.

Polygon has experienced a significant surge in transactions involving non-fungible tokens (NFTs) and real-world assets (RWAs), effectively unlocking global markets in real time.

This increased activity is enhancing the utility of the POL token, contributing to its upward price momentum.

In addition, Hadron Founders Club and Agglayer are expected to launch a flagship campus/forge for founders (first-time founders, seasoned investors, or anyone in between) in Dubai.

This confluence of ecosystem growth, heightened utility, and a wave of bullish market sentiment has ignited trading volumes and propelled Polygon’s price upward, with analysts hinting at even greater potential on the horizon.

POL technical analysis

From a technical analysis point of view, POL showcases a robust bullish reversal, having bounced decisively from a key support level at $0.19 to its current $0.2501, backed by a staggering 290.55% surge in trading volume to $411.57 million, reflecting renewed buyer enthusiasm.

The price now teeters near a pivotal $0.2474 resistance, where a strong breakout with sustained volume could solidify the uptrend, paving the way for additional gains and reinforcing market optimism for a bull run to the next resistance at around $0.30.

In the derivatives space, a 25.51% jump in POL futures open interest to $108 million and a 290% surge in the derivatives trading volume to over $411.5 million according to Coinglass data mirrors this bullish narrative, highlighting intensified trader interest and confidence in POL’s upward trajectory.

Together, these technical signals and Polygon’s fundamental advancements weave a compelling story of a cryptocurrency on the cusp of a sustained breakout, captivating investors and analysts alike.

However, the 14-day Relative Strength Index (RSI) indicator is current in the overbought region, signaling a potential pullback that could see POL test the support at $0.2333, which if breached could see the token drop to $0.19 or $0.1678.

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