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Polygon’s remarkable rebound has sparked a flurry of excitement among enthusiasts and investors alike. The asset has rallied by a significant 12.72%, touching a three-month high at $0.2736. This upswing is largely attributed to the strengthening demand, as reflected in the substantial increase in Active Addresses and Daily Transactions.
The surge in buying activity can be observed through the lens of Coinalyze data, which reveals that buy volume surpassed sell volume by a considerable margin. A stark contrast to previous market movements, this shift suggests that investors are now taking on a more optimistic stance.
Despite these encouraging signs, there is reason to exercise caution. The aforementioned profit-taking activity has also intensified, culminating in an unprecedented spike in ratio of daily on-chain transaction volume in profit to loss (3.24). This development may lead to corrective movements and potential sell-offs if the asset fails to hold its newfound ground.
As buyers continue their relentless pursuit, a crucial examination of Polygon’s chart dynamics becomes essential. The Directional Movement Index highlights the dominance of buying pressure, as evident in the Positive DI surpassing the Negative DI. Furthermore, RSI has reached 61, reinforcing bullish momentum.
With this information at hand, let us focus on two key levels that may dictate the asset’s next course of action.
Source: ambcrypto.com
