The POL price has experienced consolidation for the third week in a row, but increasing adoption of the Polygon Network indicates a possible breakout rally may be approaching.
Summary
- The POL price has been moving within a horizontal parallel channel over the past three weeks.
- The U.S. Department of Commerce has chosen Polygon to publish key economic data on-chain.
According to data from crypto.news, POL (POL) was trading at $0.24 last checked Friday, Aug. 29, in the afternoon of Asian time with a market cap exceeding $2.59 billion. The token stands 26% above its August low and 50% above its lowest point this year. However, POL is still 54% below its January high and nearly 80% below its all-time high.
As of now, several bullish catalysts have emerged that could push POL’s price up again.
First, the U.S. Department of Commerce has recently selected Polygon as one of the few blockchain networks to post official GDP data on-chain.
This high-profile government endorsement could spark renewed investor interest and long-term price growth for POL, as the network becomes more integrated into global data systems.
Second, a Philippine lawmaker has suggested utilizing the Polygon blockchain to secure national budget-related documents.
If the Philippine government adopts Polygon, it would enhance the project’s visibility and credibility, further supporting its bullish price movement in the coming months.
Third, the Ethereum scaling solution has recently upgraded its USDT supply to a native, omnichain-compatible format called USDT0. Consequently, Polygon users need not bridge from Ethereum, benefiting from reduced transaction costs across DeFi protocols.
Polygon is also becoming a strong contender in the real-world asset (RWA) sector. Securitize, a prominent real-world asset tokenization platform, has recently deployed over $72.9 million worth of tokenized assets on Polygon, including offerings from financial leaders like BlackRock (BUIDL), Apollo (ACRED), and Hamilton Lane (SCOPE).
On the daily chart, POL has been consolidating within a narrow range of $0.22 to $0.26 since early August, developing a horizontal parallel channel, which is generally viewed as a continuation zone preceding a breakout.
A decisive move above the channel’s upper boundary would indicate a potential bullish breakout, while a drop below the lower boundary could affirm a trend reversal to the downside.
Technical indicators currently favor a bullish perspective. The Supertrend indicator has turned green, often interpreted as a buy signal by momentum traders. Moreover, the 50-day simple moving average has crossed above the 200-day SMA, signaling a golden cross, a potent bullish indicator in technical analysis.
Given these factors, a confirmed breakout above the $0.26 psychological resistance level could pave the way for further gains, especially if the golden cross continues to influence short-term price movements.
On the flip side, if POL falls below the parallel channel, the price may decline towards the closest support, currently located at $0.19 and the altcoin’s low from August.
Disclosure: This article does not constitute investment advice. The content and materials featured on this page are for educational purposes only.
