Polygon [POL] is the second biggest daily gainer among the top 100 cryptos by market cap. Polygon recorded over 14% in the past hours, 9% less than what Stacks [STX] gained in the same period. This uptick extended its gains from the $0.70 support level to more than 65%. The altcoin is breaching higher resistance levels as bulls continue to accumulate POL’s DeFi strength. This raises the question of whether the altcoin can match its year-to-date (YTD) peak above the $0.18 level. POL bulls eye $0.18 supply zone—can they flip it? On the charts, Polygon had broken the neckline of an inverted head-and-shoulders pattern and held above it.
Previously, POL faced resistance at $0.12, which it has obliterated as bulls set eyes on $0.18. The LuxAlgo Smart Money Concepts show the altcoin has formed new weekly highs.
It is sitting above the equal highs (EQH) at $0.12, reinforcing the market structure shift. The indicator still stressed the supply zone between $0.15 and $0.18. Other bullish indicators included a Funding Rate of 0.0050%, which has been green on Binance since August 16. This outlook showed that traders have been leveraging long positions over the past nine days while paying premiums to keep these long orders open. Source: POL/USDT TradingView
Additionally, Historical Volatility (HV) was rising as traders continued to long the token. Over the past 5 days, HV has risen from 43.96 to 101.06, indicating high liquidity.
However, failure to hold above the breached resistance at $0.12 may slow down the rally. But why has POL been rising despite facing resistance in its uptrend?
What’s behind Polygon’s momentum? As per CryptoQuant data, Polygon’s exchange outflows surged by 690% in 24 hours, confirming the intense buying pressure. Over the past week, exchange outflows have been rising, with the 21st and 24th of August being the biggest days.
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Source: CryptoQuant
Moreover, capital inflow into the ecosystem has surged as seen in the Bridge Volume. As per Artemis, Polygon PoS accounted for the second largest bridge volume behind Tether’s liquidity protocol, USDTO. Polygon PoS volume is up 263% in the past week.
However, in the past 24 hours Polygon PoS posted the strongest Bridged Net Flows of more than $20 million in the entire market. Source: Artemis
More so, the network’s DeFi integration was growing as the TVL of the POL-based liquid staking vault grew. For instance, Charm’s sPOL vault hit $1 million in TVL, becoming the largest market maker for sPOL. This vault provides liquidity for native liquid staking (LST) on the Polygon network, satisfying the rising Historical Volatility.
Final Summary
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Polygon has surged over 14% in the past 24 hours, with the next resistance level at $0.18 after the market structure shifted to bullish.
Polygon exchange outflow increased by 690%, indicating aggressive accumulation as bridged volume and liquidity exploded.
