Polygon (POL) Uptrend Confirmed by Higher Low, Price Rally Expected
POL price finds support at $0.35 and began trending up, suggesting the start of an uptrend.
Key Takeaways
- POL has established $0.36 as a critical support zone.
- Wave structure suggests a potential bullish cycle ahead.
- The price could reach $0.70 if a higher low form.
Polygon (POL) shows signs of ending its prolonged correction, with key support forming around the $0.36 level. This could signal the start of a new bullish phase, though further validation is required to confirm an upward trend.
Polygon Price Analysis
The price of Polygon POL (ex Matic) reached an all-time high of around $3 in December 2021 and, shortly after, began a multi-year correction. On June 18, 2022, it fell to $0.36, reversing the pre-pump levels.
Since then, two recoveries resulted in the same reversion, establishing this area around $0.36 as a significant horizontal support zone. The wave structure implies that we saw a WXY correction, with its latest low of $0.35 on Sep. 6 being its ending point.
If this is true, POL could now be starting a new bullish phase, although further validation is needed, especially considering the longevity of its corrective phase.
POL Price Prediction
On March 13, MATIC reached its yearly peak at $1.30, marking an 85% increase from its Jan. 24 low of $0.70.
However, by April 13, the price had fallen below $0.60, though this decline was less severe compared to the dip in mid-September of the previous year.
Read More: Polygon Price Prediction 2024
A new downtrend emerged from March onward, bottoming out at $0.36 on Aug. 5 and again on Sept. 6, forming a double bottom. Analyzing the wave structure, it appears that the downtrend concluded as a five-wave impulse, completing a higher-degree wave C, with wave Z of the WXY correction originating from the all-time high.
Since the lows in August and September are the lowest levels seen since April 2021, this area represents a crucial support zone. As a result, an upward movement is anticipated, with POL now potentially beginning a new bull cycle.
However, if this scenario holds, a five-wave pattern to the upside could be expected. This could potentially drive the price to a near-term high of $0.70.
Should the price establish a higher low during the subsequent retracement, this would confirm the bullish outlook, with further gains likely by the end of 2024.
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