The current performance of the price of the index of the recently listed cryptocurrency $POL at the #BSC mainnet observable by @Polygon and backed by @DAO Labs through #SocialMining has exemplified the sensitivity of the token to the volatile market conditions. The price declined further to a lower support area after which it precipitated a small gain out of that important area.
This bounce back although still not decisive points to the fact that buyers are starting to test waters again. The first challenge is the upper orange resistance band, so the proposed current price activity indicates warming momentum. A break above this area would raise the potentials of another rally, particularly in case the volume was found to be favourable.
On the contrary, in case the bearishness increases, the price can decrease further. Accumulation strategies should be re-evaluated in this occasion. Instead of regarding the pullbacks as a failure, there is always an opportunity of different market participants considering them as strategic entry points especially where they coincide with overall market cycle trend and project fundamentals.
This step can be regarded as a particular challenge to the Social Mining analysts, as it requires our close observation of trend confirmations in the #PolygonHub . As long as the price action is undecided, the recovery of local bottoms in the token shows that it has the strength to withstand the setbacks. Monitoring of clean breaks or retest failures will assist in forming the next actable zone within a volatile yet data rich environment.
