A leading crypto market analyst has issued a stark warning for Polygon (POL), forecasting a dramatic price decline that has rattled investors globally. On Wednesday, Ali Martinez projected that POL could crash to $0.04, triggering intense market concerns. Currently, the token, formerly known as MATIC, trades at $0.2123, with investor sentiment growing increasingly negative.
Why Is Polygon Facing a Potential Dip to $0.04?
In a recent X post on March 19, Ali Martinez highlighted a ‘macro trend shift’ in Polygon’s price action. Despite the broader crypto market maintaining resilience, POL appears locked in a bearish trajectory.
Martinez pointed out that POL has been forming a ‘descending triangle’ pattern over the past four years, establishing horizontal support at $0.32. However, repeated lower highs created a descending trend line, leading to a bearish breakout on February 25. With this support breached, the analyst sees an 86% likelihood of further downside, potentially driving POL to $0.04.
#Polygon $POL is undergoing a macro trend shift. Here's the target! pic.twitter.com/j5hFngszAn
— Ali (@ali_charts) March 19, 2025
Polygon’s Current Market Performance
At press time, POL has gained 1% intraday, trading at $0.2123. Over the past day, the token fluctuated between $0.2035 and $0.2136. However, its monthly and yearly losses stand at 35% and 78%, respectively, reinforcing bearish pressure. The broader market downturn and the loss of the crucial $0.32 support level indicate further downside risks.
Derivatives Data Flags Waning Investor Interest
Adding to concerns, Open Interest (OI) in POL futures has seen a sharp decline. Coinglass data reveals that OI has dropped from $119 million in late January to just $55 million, signaling reduced investor participation. This decline in derivatives trading further cements bearish market sentiment.
Meanwhile, investors await the U.S. Federal Open Market Committee (FOMC) meeting, which could impact crypto markets. CME FedWatch Tool data indicates a 99% probability of unchanged interest rates. However, Fed Chair Jerome Powell’s remarks remain crucial, especially amid economic instability following Donald Trump’s tariff policies. A dovish stance could offer temporary relief to crypto prices, including POL, despite prevailing bearish sentiment.
Amidst market turbulence, the Polygon community has initiated the upgrade from MATIC to POL on Ethereum’s mainnet. According to CoinMarketCap, Polygon PoS, zkEVM users, MATIC holders, node operators, and stakers should expect a seamless transition.
Also Read: Polygon (POL) Price Down 78% from ATH—Analyst Warns of 83% Crash to $0.041 Amid Bearish Signals
While macroeconomic factors may influence short-term price movements, technical indicators suggest that POL’s bearish trend remains intact. Investors should brace for potential volatility ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
