POL price recovers over 50% after making an all-time low, but another sharp downturn followed. How bearish is this?
Key Takeaways
- The $0.36 level remains a critical support zone for POL.
- Recent lows may signal the end of the correction.
- A five-wave pattern hints at possible bullish momentum.
POL established this level as key support after a prolonged correction to $0.36 in June 2022.
However, on Nov. 4, POL’s price hit a new low of $0.28, potentially marking the end of its bear cycle.
A subsequent rally to $0.44 on Nov. 12 quickly reversed, bringing POL back to $0.36. Analysts are now watching for signs of a sustained bullish push.
POL Price Analysis
Polygon’s POL token, previously known as MATIC, reached an all-time high of around $3 in December 2021. This was followed by a lengthy corrective phase that led to a steep drop to $0.36 by June 18, 2022, erasing much of its previous gains.
Since that low, POL has twice returned to this $0.36 level, establishing it as a key horizontal support zone. On Nov. 4, the price dipped below this zone, reaching a low of $0.28, POL’s all-time low.
This could have concluded its long-lasting bear cycle, likely ending as a WXY correction from the all-time high. A 54% increase followed a high of $0.44 on Nov. 12, but POL made a sharp downturn, falling by 20%, and is currently being traded at $0.36.
Was this sharp downturn a lower-degree correction before more upside or a sign of weakness behind the upward move?
POL Price Prediction
Examining the hourly chart, we can see that from Nov. 4, POL made a five-wave impulse to the upside, likely the first sub-wave of a larger rise.
The sharp downturn led the price to a 0.5 Fibonacci retracement level, which could be its second sub-wave.
The downside advancement was made in one go, which isn’t typical for corrective waves. Two more sub-waves would confirm the structure, and POL must maintain trading above the 0.618 Fib level of $0.34.
If we see a bounce, the next uptrend could be a strong momentum one, leading to a sustained upward move. Our next target would be $0.60, while our final in this advancement would be $0.66.
Developing this five-wave structure would mean POL made the first uptrend in a new bullish phase. Its subsequent correction will provide further insight into the likelihood of this scenario.
Polygon Price Prediction 2025: POL Rebrand Points to Strong Future Potential
Polygon (POL) Price Drops to 1,300-Day Low After Steep 64% Yearly Decline
