Ethereum News Today: Polygon's POL Token Nears 78% Upside as Whale Accumulation and Technical Signals Spark Bullish Reversal

Polygon’s POL token is poised for a potential bullish reversal as on-chain data and technical indicators suggest a shift in momentum. After a 9.5% decline in the last 24 hours, the token has formed a double-bottom pattern and a golden cross on its daily chart, signaling a possible upward trend [1]. On-chain metrics further reinforce optimism, with whale wallets accumulating 33% more POL over the past month and exchange reserves dropping by 4.5%, indicating reduced selling pressure [1].

The double-bottom formation, characterized by two troughs near $0.1637, establishes a strong support level, while the neckline at $0.2768 represents a critical breakout threshold [1]. A successful breach of this level could push POL toward $0.393, a 78% gain from current levels. However, a drop below the $0.20 support would invalidate the bullish case. The golden cross—where the 20-day moving average crosses above the 50-day moving average—adds technical confirmation to the reversal narrative [1].

Polygon’s ecosystem developments are also bolstering investor confidence. A partnership with BeToken, Spain’s first EU-regulated security token offering platform, is expected to accelerate tokenized asset activity on the network, enhancing long-term demand for POL [1]. Meanwhile, Polymarket, a prediction platform built on Polygon, has re-entered the U.S. market after securing CFTC licensing, a move likely to boost transaction volumes and user engagement [1].

Stablecoin market capitalization on Polygon has grown by 8% to $2.9 billion, reflecting increased liquidity and DeFi adoption despite broader market volatility [1]. Whale accumulation trends, coupled with shrinking exchange balances, suggest large investors are positioning for future price appreciation. Analysts note that such on-chain behavior often precedes sustained price recoveries in cryptocurrencies [1].

While Polygon’s technical setup appears favorable, market participants must remain cautious about macroeconomic factors. Bitcoin’s proximity to its trading channel’s lower boundary has historically signaled potential reversals, a dynamic that could influence Polygon’s trajectory [3]. Additionally, the broader crypto market remains sensitive to Bitcoin dominance metrics, which often dictate short-term sentiment for altcoins [3].

Polygon’s resilience amid a downturn highlights its role as a key layer-2 scaling solution for Ethereum. Its ability to form bullish patterns without direct ETH exposure offers investors an alternative way to bet on Ethereum’s ecosystem growth. This aligns with broader institutional interest in stablecoins and blockchain infrastructure, as noted by KeyCorp’s recent commentary on the sector [1].

The convergence of whale activity, technical signals, and strategic partnerships positions POL for a potential recovery. However, traders should monitor key support/resistance levels and broader market conditions to navigate the volatile crypto landscape effectively.

Source: [1] [Polygon Shows Potential Bullish Reversal Amid Whale Accumulation and Key Technical Patterns July 24, 2025] [https://en.coinotag.com/polygon-shows-potential-bullish-reversal-amid-whale-accumulation-and-key-technical-patterns/] [2] [Pepe Fear and Greed Index | Multiple Timeframes] [https://cfgi.io/pepe-fear-greed-index/] [3] [nequi] [https://nequi.org/]