POL Shatters 5-Month Downtrend – Is This the Start of a Parabolic Rally?

After 150 days of bleeding, POL finally breaks key resistance—just as Bitcoin dominance wobbles. Retail traders pile in, but institutional flows remain suspiciously quiet (color us shocked).

Technical breakout or dead cat bounce? The chart paints a bullish picture: RSI hooks upward from oversold, volume spikes 40% above average, and a golden cross looms on the 4H timeframe.

Meanwhile, crypto Twitter oscillates between ’generational buying opportunity’ and ’another fakeout before the real dump.’ One thing’s certain: if this rally holds, the leverage liquidations will be spectacular.

The rising bullish sentiment among its investors is also evident in a steady increase in the number of wallets holding between 10,000 and 100 million POL tokens. That suggests whales and mid-sized holders are accumulating, possibly expecting more upside.

POL price analysis

On the daily chart, POL has broken out above the upper trendline of a long-term descending pattern that began in December 2023. This kind of breakout often signals the start of a trend reversal, and the momentum looks strong.

It also formed a golden cross on the daily timeframe, with the 9-day EMA moving above the 20-day EMA for the first time since November 2024. Back then, this signal flashed just before POL went on a 112% rally within a month, climbing from $0.34 to $0.71. If history repeats, a similar upside move could be on the cards.

Momentum indicators are leaning bullish, too. The Aroon Up is at 92.86% while the Aroon Down sits at 35.71%, showing clear dominance by buyers. The Supertrend indicator has also flashed a buy signal, with its green support line appearing below the price for the first time since last December.

With the current momentum in play, analysts have started to line up bullish targets. For instance, Man of Bitcoin pointed out that POL is currently in the third wave of an Elliott Wave pattern and has just hit the 1.618 Fibonacci extension, typically where wave-3 peaks. A healthy wave-4 pullback could come next, with support between $0.241 and $0.217.

Meanwhile, Mohamed G. Sewid believes this bounce might be the start of a massive bull run, possibly ending a 3-year corrective wave. As long as the $0.151 low holds, he says, POL could be eyeing a return to all-time highs, especially if it clears the $0.768 mark.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.