Analyst Ananda Banerjee reported this February 13 that the Polygon price structure presents a recovery pattern of thirteen percent. Although the asset shows signs similar to its previous rally, the absence of a definitive seller capitulation suggests that the current momentum still lacks the necessary strength to skyrocket immediately.
By registering a notable increase since February 11, the asset managed to stabilize near 0.095 dollars after weeks of constant selling. However, unlike the cyclical behavior observed previously, the price has failed to clean out weak positions through a sharp capitulation move, thus maintaining a latent pressure that could limit the upward momentum in the short term.
As a consequence of this stagnation, the lack of a complete seller purge generates reasonable doubts about the sustainability of the current bounce. That is why, analyzing the historical data from January, it is observed that the previous recovery was born from an absolute floor, creating a solid base for subsequent growth that now seems to be absent, compromising the confidence of traders looking for quick returns.
POL technical setup faces a decisive psychological resistance
During the period between late January and mid-February, the Polygon price structure developed a bullish divergence in the RSI. This technical phenomenon, which usually precedes major structural reversals, manifested while the value tested the 0.087 dollar support, confirming that buyers are defending key levels with a determination that could invalidate the most aggressive bearish theses.
Observing whale behavior, it was detected that large holders have increased their exposure to this cryptocurrency by sixteen percent recently. By accumulating nearly 8.75 billion tokens, these institutional investors are providing fundamental support to the digital ecosystem, absorbing available liquidity without causing the panic necessary to definitively expel speculators from the current market.
Analyzing the futures market, it stands out that open interest remains unchanged near eighteen million dollars, suggesting extreme caution. On the other hand, negative funding rates reveal that many traders are aggressively positioning themselves in favor of further falls, which creates a conducive environment for a short squeeze if the uptrend manages to consolidate with sufficient volume.
Will critical support levels manage to define the future of Polygon?
For the recovery to be genuine, the asset must decisively overcome the resistance barrier located at 0.11 dollars soon. Should this scenario materialize, the Polygon price structure would force the closing of selling positions, triggering a chain reaction towards higher targets that would allow the project to regain its relevance against other scalability solutions within the sector.
It is imperative that the support established between 0.083 and 0.087 dollars remains intact against external pressures from the macroeconomic environment. If this level were to give way, the recovery narrative would be seriously damaged, forcing analysts to look for new floors in the 0.07 dollar zone, where extreme pessimism usually precedes great financial opportunities.
Moving forward, market evolution will depend on the ability of buyers to absorb the remaining supply without sacrificing the stability achieved. Therefore, investors should closely monitor the flow of institutional capital, as the consolidation of these levels will determine the success of a rally that seeks to emulate the exponential returns recorded at the beginning of this year.
