Polygon price prediction (POL): 4 charts indicate a breakout potential of 92%.

The price of Polygon (POL) has been largely quiet during this year's altcoin growth. While assets like Arbitrum (ARB) have recorded a significant rise, POL has only increased by about 9% over the past three months.

This rate is not much compared to the activity of the rest of the market. But everything has changed. In the last 7 days, the price of POL has risen by 5% and this is happening just as the overall market begins to show signs of weakening.

This sudden surge is not random at all. Many indicators suggest that there are structural changes occurring. Traders are closely monitoring to see if Polygon can break out of the consolidation zone and begin to catch up with the market. Below are four important charts that help explain the current trends and the next direction of the price.

POL price rises to the sky when CMF reaches +0.17

The Chaikin Money Flow indicator (CMF) helps monitor the inflow and outflow of money into and out of an asset. If the index is above 0, it usually means that buying pressure is dominant. If it is below 0, it indicates that sellers are in control.

Currently, the CMF of POL is at +0.17, not only deeply in the bullish zone but also the highest level in over a month. This is also the factor explaining the recent strong rise in the price of Polygon.

Polygon CMF rises to the sky monthly high | Source: TradingViewThe last time Polygon showed a breakout structure was in Q1, when CMF also jumped to a similar level, around +0.15, just a few days before the bullish rally began.

This time, the index is even higher. This indicates that real demand is forming, along with stable net buying from market participants, which likely includes large traders. It also suggests that retail investors are coming in, taking advantage of the wave of renewed interest.

Exchange data shows whales are accumulating

Throughout August, Polygon recorded a steady outflow of tokens from exchanges. This means that traders are withdrawing POL from the exchange and transferring it to the self-custody wallet (custody).

Typically, when expecting a price drop, traders will keep their tokens on the exchange for quick selling. But when they withdraw tokens, especially in large volumes, it often indicates that they plan to hold and bet on higher prices in the future. In other words, it seems that investors are confident in the ability of the price of POL to continue to rise to the sky.

The outflow from Polygon is rising | Source: CoinglassThe stable withdrawal amount of tokens like this, especially when combined with the rising CMF index, further reinforces the possibility that whales are accumulating.

They do not move tokens randomly. When they start withdrawing coins from exchanges, it is often part of a long-term holding strategy.

The inflow of capital into the ecosystem remains strong despite low TVL

Many people may think that the price of Polygon is losing momentum because the total value locked (TVL) is still low. Currently, the TVL is around 1.2 billion dollars, much lower than the historical peak of 8 billion dollars.

Source: DefiLlamaHowever, the fundamentals reveal a different picture. Looking at the net inflow across the entire ecosystem, including staking pools, L2 bridges, and application activities, Polygon is outperforming both Solana and AR this week.

The cash flow through Polygon has improved | Source: XThese cash flows demonstrate trust. Although TVL is not rising rapidly, it is clear that developers, users, and capital are still choosing Polygon.

Polygon price structure suggests a 92% rise to the sky

The current price of POL is trading around $0.25. On the chart, the price is right above an important Fibonacci area and has just completed a typical W bottom pattern.

These patterns often appear near the end of downtrends and can lead to strong reversals if confirmed by trading volume and subsequent buying pressure.

POL price chart | Source: Daniel RamseyBased on the Fibonacci extension tool according to the trend, the first important target is at $0.342, corresponding to Fib 1.618.

POL price chart | Source: TradingViewThis level is approximately 36% higher than the current price of Polygon. However, if the breakout from this W-shaped bottom pattern is strong and the bulls continue to push the price, the Fibonacci level of 3.618 will become the next main target. This level is at $0.484, which means a rise to the sky of 92% compared to the current price.

If that is still not enough, the CMF indicators, net cash flow, and ecosystem strength are all pointing in the same direction. This consensus makes the forecast more convincing rather than relying solely on charts.

The resistance level for Polygon's price is at 0.212 dollars. This is the neckline of the W bottom pattern. If the price breaks below this level and stays low, the bullish structure will fail and the 92% target will be off the table, at least for the time being.

Minh Anh