Polygon (POL) has caught the attention of traders and investors alike. Currently priced below $0.30, Polygon is showing signs of a potential trend reversal, with increasing buying pressure and a broader market recovery fueling optimism. So, will POL manage to break through the $0.50 psychological barrier? Let’s dive into the latest price analysis and explore what the future holds for this popular altcoin.
Polygon’s Struggle With The Falling Channel
The price trend of Polygon has been primarily bearish, as the altcoin remains trapped within a falling channel pattern on the daily chart. The ongoing decline has been largely influenced by a strong resistance trendline, compounded by the pressure of the 50-day Exponential Moving Average (EMA). This combination has kept the POL price under control, preventing significant upward momentum.
However, recent price action shows that Polygon is not backing down. After reaching the support trendline of the falling channel, POL experienced a bullish comeback, indicating that market sentiment could be shifting. The altcoin’s price has risen by 16% in the past three days, marked by three consecutive bullish candles. This increase signals that Polygon may be on the verge of a trend reversal, fueled by both its own price action and the recovery of the broader market.
The Path to a Potential Breakout
Polygon’s upward movement is now targeting the 50-day EMA, which represents a key level of dynamic resistance. In order for POL to experience a breakout rally, it must first overcome the declining resistance trendline that has been constraining its price movement. If this obstacle is cleared, the altcoin could surge higher.
A major hurdle, however, will be the $0.50 psychological mark. As Polygon approaches this level, it is likely to face additional resistance, including the 200-day EMA. While these resistance levels are significant, the increased buying pressure and the potential for a trend reversal, as indicated by the MACD crossover, suggest that a breakout could be on the horizon. The MACD’s positive crossover and the surge in positive histograms signal a strong buying opportunity for those looking to capitalize on a potential rally.
Will Polygon Cross $0.50?
The short-term trend in POL is showing promising signs. The breakout at $0.335 has increased the chances of a sustained rally. If Polygon continues to gain momentum, the price could potentially reach the 50% Fibonacci level at $0.6089, marking a significant milestone.
Also Read: Polygon (POL) Hits Record Low of $0.285: Is This the Perfect Time for a 400% Gain?
On the other hand, the key support levels for POL remain at the $0.30 psychological mark and the $0.2918 low. These levels will be crucial in determining whether the current bullish momentum can be sustained.
As the altcoin market continues to recover, the future of Polygon looks promising. A breakout beyond $0.50 would mark a significant milestone, and if the broader market continues its positive trajectory, Polygon could be poised for further gains.
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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