Key Takeaways
The Polygon price has struggled mightily in 2024, falling by 65%. Even the rebrand from MATIC to POL failed to trigger any upward movement. While the price bounced shortly after the rebrand, it has fallen significantly in October.
After the recent breakdown from a long-term support area, the POL price risks a plunge because of the lack of support.
Let’s look at the price action and see if there is any hope of a bullish trend reversal.
The POL price has fallen since the yearly high of $1.29 in March. While there have been some bounces along the way, they were insignificant and short-lived relative to the long-term trend.
The decline was critical since it caused a breakdown from the long-term horizontal support at $0.375.
This area has existed since April 2021. Currently, the POL price trades at the wick-low support of April 2021.
The POL price has also found support in the middle of a descending parallel channel that has existed since March 2023. The channel’s support trend line is at $0.240, which will provide the next support level if POL continues to decline.
Technical indicators are mixed. The Relative Strength Index (RSI) has generated some bullish divergence (green) but is declining and is below 50. The Moving Average Convergence/Divergence (MACD) has made a bullish cross but is below 0.
Despite the bearish POL price action, some positive Polygon news relating to betting markets exists .
Polymarket on Polygon has exceeded $300 million in Total Value Locked (TVL) and over 92% of the crypto prediction markets TVL is on Polygon.
While the weekly time frame is decisively bearish, the daily one offers some hope of a bullish reversal because of the wave count.
The most likely count suggests the POL price has completed a five-wave decline since March. Wave three had 0.618 times the length of wave one, so wave five may have 0.618 times the length of wave three.
If so, the five-wave decline has ended, and an upward movement has started.
However, technical indicators are still bearish since the RSI is below 50 and the MACD is below 0. As a result, the daily wave count is insufficient to predict a bullish trend reversal.
The weekly and daily time frame POL readings fail to confirm the trend’s direction. While the wave count suggests the decline may be over, the price action and indicator readings are bearish.
If POL bounces at the parallel channel’s midline, it can increase to the horizontal resistance area at $0.375.
Conversely, the next support is at $0.240. The long-term trend is bearish until POL closes above $0.375.