Why POL’s 10% price rally might stop, DESPITE $10M ETH inflows
The post Why POL’s 10% price rally might stop, DESPITE $10M ETH inflows appeared on BitcoinEthereumNews.com. POL surged significantly over the last 24 hours as Ethereum investors moved funds into the asset Market analysis revealed that the rally could soon stall due to resistance levels and selling pressure from other market segments Polygon [POL] rallied by double-digits on the charts, gaining by 10.43% to trade at $0.2065 in the last 24 hours. And yet, data suggested that the rally could be capped. Especially as sellers begin to dominate both spot and derivative markets, betting against further upside. Ethereum investors fuel POL’s rally The latest surge in POL’s price was primarily driven by a cross-ecosystem liquidity injection, according to Artemis. In fact, Total Bridge Netflow data, which tracks the movement of funds across blockchains, revealed that Ethereum investors moved significant capital into Polygon over the last 24 hours. Source: Artemis At the time of analysis, over $10.4 million in net inflows had been used to purchase POL – A sign of strong demand for the asset. Historically, such demand spikes tend to trigger uptrends, with the same highlighted by POL’s recent rally. However, according to AMBCrypto’s analysis, the rally may be coming to an end soon. No light at the end of the tunnel? The POL/ETH chart, which tracks fund flows between the two tokens, revealed that POL attracted more capital during its price rally. Interestingly, this northbound move coincided with a breakout from a descending channel – A typically bullish pattern. In previous instances, POL has rallied to the top of this pattern near $0.0000969 on the charts. Source: TradingView However, the Fibonacci retracement levels highlighted multiple resistance zones that could hinder further gains. A key resistance lay at $0.0000775 – A level that POL must overcome to maintain its upside on the charts. Previously, the price action at this Fibonacci level has resulted in a…
The post Why POL’s 10% price rally might stop, DESPITE $10M ETH inflows appeared on BitcoinEthereumNews.com.
POL surged significantly over the last 24 hours as Ethereum investors moved funds into the asset Market analysis revealed that the rally could soon stall due to resistance levels and selling pressure from other market segments Polygon [POL] rallied by double-digits on the charts, gaining by 10.43% to trade at $0.2065 in the last 24 hours. And yet, data suggested that the rally could be capped. Especially as sellers begin to dominate both spot and derivative markets, betting against further upside. Ethereum investors fuel POL’s rally The latest surge in POL’s price was primarily driven by a cross-ecosystem liquidity injection, according to Artemis. In fact, Total Bridge Netflow data, which tracks the movement of funds across blockchains, revealed that Ethereum investors moved significant capital into Polygon over the last 24 hours. Source: Artemis At the time of analysis, over $10.4 million in net inflows had been used to purchase POL – A sign of strong demand for the asset. Historically, such demand spikes tend to trigger uptrends, with the same highlighted by POL’s recent rally. However, according to AMBCrypto’s analysis, the rally may be coming to an end soon. No light at the end of the tunnel? The POL/ETH chart, which tracks fund flows between the two tokens, revealed that POL attracted more capital during its price rally. Interestingly, this northbound move coincided with a breakout from a descending channel – A typically bullish pattern. In previous instances, POL has rallied to the top of this pattern near $0.0000969 on the charts. Source: TradingView However, the Fibonacci retracement levels highlighted multiple resistance zones that could hinder further gains. A key resistance lay at $0.0000775 – A level that POL must overcome to maintain its upside on the charts. Previously, the price action at this Fibonacci level has resulted in a…
What's Your Reaction?
