Home / Analysis / Crypto / Technical Analysis / Polygon (POL) Breakout Could Spark New Rally with 82% Upside

Polygon (POL) Breakout Could Spark New Rally with 82% Upside

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • POL found strong support at $0.36 after a major correction.
  • A breakout from the current consolidation could trigger a bull run.
  • Near-term target: $0.70, with potential for an 82% gain.

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 Price Analysis

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.

MATIC price analysis
MATICUSD at descending triangle apex | Credit: Nikola Lazic/TradingView 

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. 

POL Price Prediction

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.

MATIC price prediction
MATICUSD 82% upside potential | Credit: Nikola Lazic/TradingView 

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. 

 

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.
Was this Article helpful? Yes No