Key Takeaways
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’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.
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.
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.
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.