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Polygon (POL) Finds Support at September Low — Bullish Prospects Grow

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • POL established $0.36 as a key support level.
  • A potential bullish trend may be developing.
  • The price could target $0.70 if the upward movement continues.

Polygon’s POL token, formerly MATIC, has experienced significant price fluctuations since reaching an all-time high in December 2021.

Following a multi-year correction, recent analysis suggests it may be on the verge of a new bullish trend.

This overview explores the current state of POL, its critical support levels, and potential price movements based on recent market behavior.

Polygon Price Analysis

Polygon’s POL token (previously known as MATIC) reached its all-time high of approximately $3 in December 2021, after which it entered a prolonged correction. By June 18, 2022, the price had plummeted to $0.36, wiping out all gains from the preceding surge.

Since then, two recovery attempts have retraced to the same level, establishing the $0.36 mark as a critical horizontal support area.

The wave structure indicates a WXY correction, and the recent low of $0.35 on Sept. 6 could signal the conclusion of this corrective phase.

MATIC short term prediction
MATICUSD at horizontal support zone | Credit: Nikola Lazic/TradingView 

If this analysis holds, POL may be on the brink of a new bullish trend. However, further confirmation is necessary given the extended corrective period, especially as the price is now at the Sept. 6 low again.



Either this was its final retest before a reversal could be seen, or we have slightly more room to the downside for another interaction with the horizontal zone’s lower level of $0.32. 

POL Price Prediction

On March 13, POL achieved its highest price of $1.30, marking an 85% increase from its Jan. 24 low of $0.70. Nevertheless, by April 13, the price had dropped below $0.60, although this decline was less severe than the mid-September drop from the previous year.

A new downtrend began in March, hitting a low of $0.36 on Aug. 5 and Sept. 6, forming a double-bottom pattern.

The wave structure analysis suggests that this downtrend has concluded as a five-wave impulse, marking the end of the higher-degree wave C and completing wave Z of the WXY correction that initiated from the all-time high.

The lows recorded in August and September represent the lowest price levels since April 2021, underscoring this area as a key support zone.

Consequently, an upward movement is anticipated, with POL likely initiating a new bullish cycle.

From Sept. 6 to 13, the price increased by 25%, reaching a high of $0.45. This could represent the first sub-wave of a lower-degree uptrend.

However, the next advance from that point failed to exceed the previous high before retreating to $0.40.

MATIC short term prediction
MATICUSD bounce expected | Credit: Nikola Lazic/TradingView 

This sign of weakness should be considered; nonetheless, the bullish count remains intact as the price continues to maintain a higher low.

If this perspective is accurate, a five-wave upward pattern is expected. This could potentially drive the price toward a near-term target of $0.70.

Should a higher low be established during the upcoming retracement, this would further validate the bullish outlook, with additional gains likely by the end of 2024.

Read more: Polygon Price Prediction 2024: POL Price Analysis
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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