Polygon (POL) Price Eyes Breakout From Resistance, but Momentum Lags Behind

Key Takeaways

• POL has key support at $0.36, signaling stability.
• A potential breakout targets $0.70, implying an 82% increase.
• Slow momentum raises questions about the current breakout strength.

Polygon’s (POL) price has experienced significant volatility, moving sideways above its horizontal support and below descending resistance.

Recent price action suggests a potential bullish phase, but confirmation remains uncertain as momentum builds slowly.

Polygon Price Analysis

Polygon’s POL token (formerly MATIC) hit an all-time high of around $3 in December 2021, followed by a prolonged correction.

By June 18, 2022, the price had plunged to $0.36, wiping out earlier gains.

Since then, POL has twice rebounded to this level, establishing $0.36 as a critical horizontal support zone. The wave structure indicates a WXY correction, with the recent low of $0.35 on Sept. 6, possibly marking the end of the correction.

If confirmed, this could signal the beginning of a new bullish phase, although the extended correction necessitates further confirmation.

Since Sept. 6, POL has traded sideways around $0.36. A breakout was anticipated as it neared the end of a descending triangle.

Given its position at long-standing horizontal support, a breakout to the upside would likely signal the start of a sustained bullish trend.

POL Price Prediction

On March 13, 2024, POL reached a yearly high of $1.30, representing an 85% increase from its January 24 low of $0.70.

By April 13, the price had dropped below $0.60, but this decline was less severe than the previous year’s September drop.

The downtrend that began in March bottomed out at $0.36 on Aug. 5 and Sept. 6, forming a double bottom and completing a five-wave impulse.

This signaled the end of wave C and concluded the WXY correction that followed the all-time high.

The August and September lows represent the lowest levels since April 2021, solidifying this zone as crucial support. After hitting these lows, POL rallied 25% to $0.45 between Sept. 6 and 13, likely initiating a new uptrend.

Although a subsequent rally on Sept. 17 failed to break previous highs, the higher low maintained the bullish outlook.

Today, we saw the price moving over the descending resistance but with slow momentum, which questions the validity of a breakout. Nevertheless, POL maintained above its horizontal support and is now gaining traction. 

POL could develop a five-wave pattern to the upside if this trend continues, with a near-term target of $0.70 resistance.