Polygon jumps 18% – How POL erased all of December’s losses

Polygon [POL] has extended its strong upward trend after rebounding from a dip below $0.10 last week. Since holding that support, the altcoin has posted higher highs for nine consecutive days, signaling firm buyer control.

The rally pushed POL to $0.151, a level last seen in November, effectively erasing all of December’s losses. At the time of writing, the token was trading at $0.1505, up 18.12% on the daily charts.

This surge was reinforced by a 98% increase in trading volume and an 18.19% rise in market capitalization, pointing to steady capital inflows.

Polygon sees elevated conviction

Moreover, as POL showed sustained upward momentum, buyers stepped in at each key level and defended it over the past week. 

Over the last 24 hours, for example, the altcoin recorded 114.6 million in Buy Volume, at the time of writing. Despite that, sellers have also followed the uptrend strongly, recording 110 million in Sell Volume over the same period. 

Despite that, they have failed to displace buyers who have shown greater determination to hold the market. As a result, the Buy Sell Delta has remained largely positive at press time, a clear sign of buyer dominance. 

Furthermore, the Accumulation and Distribution Volume also echoed the accumulation trend. Polygon saw elevated volume, rising to 61 million, with buyers taking 51.9 million while sellers saw 50.29 million. 

Thus, while the market has remained competitive, the accumulation and distribution line suggested absorption. Historically, these market conditions have boosted asset prices. 

Polygon to announce a grand vision

Amid strong market performance and suitable conditions, Polygon’s CEO, Sandeep Nailwal, announced Polygon’s vision, labelled Open Money Stack. 

According to Sandeep, Polygon has entered a new phase of building how the world experiences money via an integrated stack. 

One integrated stack will move all the money on-chain. Thus, Polygon’s Open Money Stack will build integrated stablecoin money movement, blockchain rails, wallet infrastructure, identity, earning, etc. 

The system will be a one-stop shop that institutions and enterprises rely on to move money on-chain, globally, reliably, and at scale.

A vertically integrated stack matters here because latency, composability, and finality guarantees need to be co-designed rather than glued together across layers.

Can POL upside momentum hold?

POL has recorded sustained upward momentum, with buyers consistently stepping into the market and accumulating.

As a result, Polygon’s Relative Strength Index (RSI) climbed to 77 as of writing and reached closer to overbought territory. The indicator’s uptick suggested total buyer dominance in the market.

At the same time, its DMI Stochastic Momentum Index (DMI-SMI) rose to 61, while TSI remained above it at 87. These market conditions indicated strong upward momentum and the potential for continuation.

Thus, if the prevailing sentiment holds, POL will clear $0.16 resistance and target its long-term resistance of $0.18.

However, sellers remain relatively active in the market, and if they overwhelm buyers, POL could pull back to $0.12.

Final Thoughts

• Polygon surged 18.12%, reaching a 2-month high of $0.151. 
• Polygon CEO announced the Open Money Stack vision, which builds on how the world experiences money via an integrated stack.