- POL price rally follows a decisive breakout from a prolonged bearish structure.
- Rising volume supports the move, signaling broad market participation.
- Technical indicators suggest short-term cooling without trend invalidation.
POL has captured attention after a sharp trend reversal on higher timeframes. Technical structure and volume behavior indicate a momentum-driven expansion. However, resistance levels introduce near-term caution for market participants.
Breakout Marks a Clear Shift in Market Structure
The POL price rally began with a decisive break above a long-respected descending trendline. For several months, price action reflected sustained selling pressure through lower highs and lower lows.
Each prior attempt to approach the trendline met aggressive rejection, reinforcing a distribution phase. This pattern confirmed that supply remained firmly in control through late 2024.
According to market commentary shared by ZAYK Charts, the early January breakout changed that dynamic. Price did not stall above resistance but expanded impulsively, signaling demand had overtaken supply.
The breakout was accompanied by strong candle structure on the four-hour chart. Long-bodied green candles and limited overlap reflected conviction rather than short covering.
As long as price holds above the former trendline, now acting as support, the breakout remains technically valid. This level has become central to short-term trend assessment.
Momentum Acceleration Backed by Volume Expansion
The POL price rally accelerated rapidly following the breakout, producing gains exceeding 60% from the recent base. The move unfolded with shallow pullbacks and consistent higher highs.
ZAYK Charts highlighted that volume played a critical confirming role. Reported 24-hour trading volume surpassed $600 million during the advance.
Relative to an estimated $1.9 billion market capitalization, this activity suggests broad participation. The rally does not resemble a thin or isolated price spike.
Another supportive factor was the alignment between market capitalization and fully diluted valuation. With no immediate dilution concerns, price action faced fewer structural headwinds.
POL advanced more than 50% toward the $0.18 region. The speed of the move reflected momentum expansion rather than gradual accumulation.
Resistance Pressure Signals Need for Cooling Phase
As the POL price rally approached the $0.18 to $0.19 zone, signs of short-term hesitation emerged. Minor wicks and slower follow-through suggested early profit-taking.
Ali Charts referenced the appearance of a TD Sequential “9” sell setup on the daily chart. This signal often marks stretched momentum after extended directional moves.
The indicator does not predict a trend reversal by itself. Instead, it points toward a pause, range formation, or corrective pullback.
From a structural perspective, a retracement toward the $0.16 or $0.15 area would remain constructive. These levels align with prior demand and recent consolidation zones.
Maintaining higher lows would preserve the bullish framework established after the breakout. A decisive loss of support would be required to shift the trend bias.