POL Price Outlook: Potential Breakout Rally on the Horizon
The POL price remained in consolidation in the third week in a row, but the increasing introduction of the Polygon network now indicates that there is a potential outbreak rally on the horizon. The token’s trading activity and recent developments suggest a bullish outlook, with several catalysts that could drive the price up.
The polarity of POL has been traded in a horizontal parallel channel in the past three weeks, with a market capitalization of over $2.59 billion. According to Crypto.News, POL acted on Friday, August 29, at $0.24, with the token currently 26% over its August low and 50% above its lowest point this year. However, POL remains 54% below the January high and below 80% below its all-time high.
Bullish Catalysts
Several bullish catalysts have increased, which could drive the price of POL up. Initially, the US Ministry of Trade recently selected Polygon as one of the few blockchain networks to release official GDP data on-chain. This top-class adoption of the government could increase the interest of new investors and lead to a long-term price increase for POL, as the network is integrated into global data infrastructure.
- The US Ministry of Trade has selected Polygon to publish important business data on-chain.
- A Filipino legislature has proposed using the Polygon blockchain to secure the country’s national budget documents.
- Polygon has upgraded its USDT supply to a native, omnichain-compatible format as a USDT0, reducing transaction costs for users.
Additionally, Polygon is developing as a solid contender in the real asset (RWA) sector, with Securitize, a leading platform for asset tokenization, recently tokenizing assets on Polygon worth over $72.9 million, including offerings from financial giants such as Blackrock (Buidl), Apollo (ACRD), and Hamilton Lane (Scope).
Technical Analysis
In the daily chart, POL has been consolidated within a narrow area of $0.22 to $0.26 since the beginning of August, forming a horizontal parallel channel, a pattern typically interpreted as a continuation zone before an outbreak. A decisive movement above the upper limit of this channel would signal a potential bullish outbreak, while a collapse below the lower border could confirm a trend reversal against the disadvantage.
Pol Price has confirmed a golden cross in the Daily Chart – August 29 | Source: crypto.news
Technical indicators are currently supporting a bullish outlook. The SuperTrend indicator has turned green, which is often considered a buy signal by impulse traders. Moreover, the 50-day simple moving average has crossed above the 200-day SMA, confirming a golden cross, a strong bullish indicator in technical analysis.
Pol Supertrend Diagram – August 29 | Source: crypto.news
In view of these factors, a confirmed breakout above the psychological resistance of $0.26 could open the door for further profits, especially if the Golden Cross continues to lead the short-term price campaign. As a bear case, the price interrupting under the parallel channel could slide the price lower towards the nearest support, which is currently $0.19 and the Altcoin August low.
Disclosure: This article does not contain investment advice. The content and materials presented on this page only serve for educational purposes.
Read more about the top reasons why POL price may jump soon at https://crypto.news/top-reasons-why-pol-price-may-jump-soon/
