POL, the rebranded Polygon’s MATIC token, is currently trading at $0.2429, down by 15% in the last 24 hours. This represents a steep decline from its all-time high of $1.29 in March 2024, with the token shedding 78% of its value over the past year. However, some analysts believe that POL may be on the verge of a significant price movement.
Renowned crypto analyst Ali Martinez has pointed out that POL could be breaking out of a multi-year descending triangle pattern. This technical formation often leads to a decisive move, either a breakout or a breakdown. If the breakout materializes, POL could face a sharp price plunge, with Martinez suggesting that it might drop to as low as $0.041 — an alarming 83% decline from current levels.
#Polygon $POL looks to be breaking out of a multi-year descending triangle, potentially setting up for a move toward $0.041! pic.twitter.com/42oO53cKEN
— Ali (@ali_charts) March 4, 2025
Key Technical Indicators and Outlook
Looking at POL’s daily chart, the Relative Strength Index (RSI) is in the oversold territory, signaling that a short-term relief rally could be in the cards. However, a sustained recovery would need stronger bullish momentum to gain traction. The Bollinger Bands are also suggesting oversold conditions, with POL currently trading near the lower band. While this could indicate a potential bounce, any upward move might be short-lived unless it reverts toward the mid-band.
The Moving Average Convergence Divergence (MACD) remains below the signal line, further signaling bearish momentum. Until the MACD lines cross upwards, it’s unlikely that POL will experience significant price appreciation in the short term.
Fibonacci Levels and Support Zones
Fibonacci extension levels indicate that POL has broken through crucial support zones. The next major support sits around $0.20, while resistance for any bullish momentum is at $0.30. A move above this resistance could trigger buying interest, but failure to hold above $0.20 may lead to further downward movement.
Long-Term Optimism for POL
Despite the recent struggles, many experts remain optimistic about POL’s long-term potential. Crypto expert Del Crxpto emphasized the token’s strong brand recognition and partnerships with major companies like Disney. POL’s scalability and lightning-fast transactions continue to draw attention, and many see the current low prices as a potential accumulation opportunity before the next bull cycle.
Also Read: Polygon (POL) Faces Heavy Sell-Off: Massive Liquidity Outflows Signal Drop to $0.24
With a market cap of $2.09 billion, POL ranks 42nd among the largest cryptocurrencies. As the market remains volatile, traders are keeping a close eye on whether POL can regain momentum or if further declines are in store.
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.
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