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Key Takeaways:
- POL has rebounded 130% from its April 2025 low, showing early signs of a trend reversal.
- Bullish divergences on RSI and MACD strengthen the case for a sustained recovery.
- A breakout above $0.37 could confirm the end of Polygon’s multi-year downtrend.
After a brutal 95% decline from its all-time high, Polygon’s POL token may finally be showing signs of life. A bounce from long-term lows, bullish technical patterns, and strengthening momentum indicators suggest that a trend reversal could be underway.
POL Hits Four-Year Low Before Bounce
Polygon’s price action since its $2.92 peak in December 2021 has been overwhelmingly bearish. A failed rally to $1.56 in 2022 gave way to a prolonged decline, which worsened in mid-2024 with a breakdown from a key symmetrical triangle pattern. This led to a collapse below $0.37 support and a new four-year low of $0.151 in April 2025.
However, the recent recovery from that level is now drawing attention. The bounce has completed a W-X-Y corrective wave structure, which often precedes trend shifts. This could mark the end of the downtrend and the beginning of a sustained recovery.
Bullish Momentum Signals a Shift
Momentum indicators are starting to favor the bulls. Both the Relative Strength Index (RSI) and the MACD are showing bullish divergences—a strong signal that selling pressure may be exhausted. These technical cues, especially when combined with Elliott Wave analysis, reinforce the possibility of a long-term bullish reversal.
The shorter-term daily chart also supports this view. It shows that Polygon has already completed a five-wave upward move, followed by a textbook A-B-C correction. Since June, POL has entered a new five-wave structure and is now in wave three, typically the most explosive leg.
Can POL Break Through Resistance?
The next key test for POL is the $0.35–$0.37 resistance zone. The projected wave-three target of $0.35 aligns with this area, making it a potential inflection point. A strong breakout above $0.37 could validate the reversal and spark broader bullish momentum.
While confirmation is still needed, the technical case for a Polygon comeback is building. Traders should watch for a decisive break above resistance as a possible trigger for the next leg up. If successful, this could mark the end of the bear cycle for POL and the start of a new trend.
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.
Also Read: How to Use Polygon for Cheap and Fast DeFi Transactions: A Beginner’s Guide
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
