Key Takeaways
The Polygon (POL) Price has seen price swings since reaching its all-time high in 2021. After a lengthy correction and recent consolidation at a critical support level, POL appears to be approaching a potential breakout, which could signal the start of a new bullish phase.
Here’s a concise overview of key developments and predictions for POL.
Polygon’s POL token (formerly MATIC) reached an all-time high of around $3 in December 2021 before entering a prolonged correction.
By June 18, 2022, the price had dropped to $0.36, erasing its previous gains.
Since then, the price has rebounded twice to the same level, establishing $0.36 as a key horizontal support zone.
The wave structure suggests a WXY correction, with the recent low of $0.35 on Sept. 6 potentially marking the end of this correction.
If accurate, POL could be on the verge of a new bullish phase, but further confirmation is needed due to the extended corrective period.
Since Sept. 6, the price has been trading sideways, mostly around its current lower level of $0.36. A breakout is expected as it approaches the descending triangle’s ending point.
Considering that POL is sitting at its horizontal support zone, which has held the price since its market release, a breakout to the upside will signal a new bull phase with sustained ascending moving forward.
On March 13, 2024, POL reached a yearly high of $1.30, marking an 85% increase from its January 24 low of $0.70.
However, by April 13, the price had dropped below $0.60, though this decline was less severe than the drop in mid-September of the previous year.
The downtrend that began in March bottomed out at $0.36 on Aug. 5 and Sept. 6, forming a double bottom. This completed a five-wave impulse, signaling the end of wave C and concluding the WXY correction that began after the all-time high.
The August and September lows represent the lowest levels since April 2021, solidifying this zone as crucial support.
Following these lows, a 25% rally to $0.45 occurred between Sept. 6 and 13, likely forming the first sub-wave of a new uptrend.
A subsequent rally on Sept. 17 failed to break previous highs, but the price maintained a higher low, keeping the bullish outlook intact.
If this scenario continues, POL could form a five-wave pattern to the upside, with a near-term target of around $0.70 resistance, at least an 82% increase from the current level.