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Polygon (POL) Price Tests Critical Support Level, Bounce Anticipated

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • POL is currently at a pivot point; retesting below the prior resistance at 0.42 or lower will neglect the anticipated breakthrough.
  • RSI is at neutral territory, showing signs of oversold at around 45
  • ABC correction coming to an end; if POL gains momentum, breakthrough within wave (iii) is highly likely 

The daily chart shows POL’s recent price actions, including completing a five-wave impulse followed by an ABC correction.

Price action signals a potential reversal on the more petite time frame because a new five-wave impulse appears to have started.

POL Price Analysis

The daily chart shows POL completed an (a-b-c) correction within a descending flat triangle. The correction began after a completed 5-wave impulse, with wave (v) peaking at $0.76 on Dec. 3.

The current price is testing the prior resistance for support at $0.42 and is hovering slightly above it.

POL price analysis
POLUSD at key horizontal zone | Credit: Nikola Lazic/TradingView 

POL rose from Nov. 4 at a low of around $0.30, with its first wave (i) peak at $0.44 on Nov 12. To wave (5), it continued rising by 70% more, racing to a high of $0.76 in December by its end. 

The daily Relative Strength Index (RSI) shows neutral movement, which signals that the price is struggling to gain momentum for a breakthrough above the descending flat.

POL is currently at a pivot point as it could also revert to the lower boundary of the horizontal zone around $0.30.

POL Price Prediction

On the 1-hour chart, POL appears to have ended its ABC correction since December’s high to a low of $0.41 on Jan 13. The following 25% rise could have indicated the start of a new 5-wave impulse, with wave (i) completed at the upper boundary of the descending flat at around $0.51

POL price prediction
POLUSD bounce likely | Credit: Nikola Lazic/TradingView 

It was followed by a corrective wave (ii) that retracted to the $0.42 level (prior resistance), which is currently testing the horizontal level for support.

POL is at a pivot point. In a bullish scenario, it shouldn’t go lower than the prior low, or it will invalidate the projected five-wave impulse outlook. If it does find support, we expect wave (iii) to proceed with the upward momentum past the descending resistance and to a target of $0.60, as projected by the Fibonacci extension level of 1.618. 

The RSI on the one-hour time frame shows neutral and slightly oversold conditions, at 44, signaling that a recovery is more likely from this point on. 

Key levels to watch

  • Immediate Resistance: $0.47.
  • Secondary Resistance: $0.51
  • Critical Resistance: $0.53 
  • Immediate Support: $0.42
  • Critical Support: $0.41.
  • Short-Term Target: $0.61
  • Invalidation Zone: below $0.41.
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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