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POL, the native token of the Polygon network, is up more than 50% in a week. POL’s price action was not the result of a single rally or headline-driven explosion. Instead, it was supported by continuous demand for the chain throughout the network.
When the price stops near the recent highs, the focus changes. It’s not just about bullish momentum anymore. The main question now is whether POL is heading towards a healthy consolidation or a deeper correction.
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The demand for the series continues as the momentum begins to wane
Data on the chain shows that Polygon has maintained consistent usage In the beginning of January. Daily unique addresses remained steady, and transaction activity continued to grow in line with other major EVM networks. This indicates continued demand for the network rather than short-term speculation.
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This steady demand for the chain explains why POL is growing strongly. Users do not leave the network, and the activity did not die after the price jump. This forms a solid base under the transition.
However, momentum signals are starting to diverge. The relative strength index, or RSI, measures price momentum by comparing recent gains with recent losses. When the RSI rises while the price fails to follow, it indicates that the momentum is active
It does not translate into price tracking.
Between mid-October and early January, the price of POL forms lows while the RSI registers highs. This setup is known as a hidden bearish bias. This does not indicate panic or an immediate collapse. Instead, it indicates a strong refresh and a high risk of a pullback after a strong period.
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This divergence is confirmed only if the next price candle forms below $0.174. For now, just warn that the demonstration may need time to break out.
Whales reduce exposure while retail continues to buy
Keeping the behavior helps to explain how this reset could go.
Large owners reduced risk exposure before the recent price break. Wallets holding between 100 million and 1 billion load points (POL) began shrinking balances around January 3. Since then, its shares have decreased from about 743.6 million Polish Pula to about 708.3 million Polish Pula.
This was followed by the next class of whales, bringing between 10 million and 100 million Polish classes. This group began reducing balances around January 7th, dropping from approximately 571.7 million Bolt Points to approximately 563.0 million Bolt Points.
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Meanwhile, the smaller carriers move in the opposite direction. The sales groups, which often run between 10 and 10,000 Pounds, have gradually increased their balances throughout the rally and in the current period.
This dichotomy is important. The whales seem to respond to the refreshing impulse and mapping signals. As for the participants of the retail sector, they could react to the clear demand of the chain and the increase in the activity of the network.
This combination often leads to fusion. It could also create deeper risk in the cooling period if the momentum in emotional buying diminishes.
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POL price levels that determine consolidation, or a deeper correction
The movement of the price POL She is the one who determines the result now. If POL continues above $0.155, this rally will likely remain as a consolidation. This level served as a key support zone in early November, and holding it will allow the market to absorb the sell-off without breaking the structure.
A clean move back above $0.188 will mitigate bearish momentum signals. A stronger squeeze above $0.213 will completely cancel the deviation and reopen the path towards $0.253.
On the downside, a sustained decline below $0.155 would shift the setup towards a reset. This opens the way towards $0.142, with the potential for a deeper extension near $0.098 if selling accelerates.
again, POL remains supported by stable demand in the chain.
The rally hasn’t collapsed, but momentum is cooling, and the big holders are pulling back. Whether it is just a simple consolidation or a deeper drop depends on how the price behaves around the support.
