POL Price- Ethereum Flows Drive Polygon’s Recent Price Spike
POL Price– Polygon (POL) experienced a notable price surge, climbing 10.43% to trade around $0.2065 within the last 24 hours. This rally was fueled by significant liquidity inflows from Ethereum investors, according to recent blockchain data.
Artemis reports that a cross-ecosystem capital movement primarily propelled POL’s price action. Total Bridge Netflow data showed over $10.4 million in net inflows directed from Ethereum into Polygon, signaling heightened demand for the token. Historically, such inflows have been associated with upward price momentum, which aligns with Polygon’s recent gains.
Despite the bullish signals, market analysts highlight potential resistance ahead. The POL/ETH trading pair recently broke out of a descending channel—a pattern often viewed as bullish. However, Fibonacci retracement levels mark critical resistance near $0.0000775, a price point where previous rallies faced sharp rejections, dragging the token back down.
If Polygon (POL) fails to overcome this resistance, the token could enter a range-bound phase between $0.0000775 (resistance) and $0.0000705 (support), suggesting limited upside in the short term.
Market Sentiment Shows Growing Caution
Data from Coinalyze reveals increased activity in the perpetual futures market, with Open Interest rising 12.25% to $100.7 million over 24 hours. However, the funding rate turned negative (-0.0011), indicating a majority of traders are opening short positions, reflecting cautious or bearish sentiment.
Additionally, spot market data from CoinGlass shows significant sell-side pressure, with $1.2 million worth of POL sold within the same period. This combination points to a growing hesitation among retail traders to push prices higher.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
