Polygon (POL) Price Hits Critical $0.36 Support — Bullish Phase on the Horizon
POL price struggles to form a bullish uptrend but the $0.40 remains holding. Will a rally start soon as the price eyes a breakout?
Key Takeaways
- POL reached a crucial support level at $0.36.
- Wave structure suggests a potential new bullish phase.
- A confirmed higher low could lead to gains in 2024.
Polygon (POL), formerly known as MATIC, has experienced significant price fluctuations since its all-time high in December 2021. The token has undergone a multi-year correction, establishing critical support zones and potentially entering a new bullish phase.
There are some signs of caution as the September uptrend stands on shaky legs, but the overall structure is still bullish.
Polygon (POL) Price Analysis
Polygon’s POL token (formerly MATIC) hit its all-time high of around $3 in December 2021 before entering a multi-year correction.
Since then, two recoveries have retraced to the same level, establishing the $0.36 area as a significant horizontal support zone.
The wave structure suggests a WXY correction, with the recent low of $0.35 on Sept. 6 marking the potential end of this correction
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If this analysis is correct, POL could be entering a new bullish phase. However, given the lengthy corrective period, further confirmation is needed.
The first major sign will be a breakout above the descending flat triangle anchored at the all-time high.
POL Price Prediction
On March 13, POL reached its yearly high at $1.30, an 85% surge from its January 24 low of $0.70. However, by April 13, the price had declined below $0.60, though this was a milder drop than the one seen in mid-September of the previous year.
A new downtrend began from March onwards, reaching a bottom of $0.36 on Aug. 5 and Sept. 6, forming a double bottom. Analyzing the wave structure, this downtrend has completed as a five-wave impulse, marking the end of a higher-degree wave C and concluding wave Z of the WXY correction that began from the all-time high.
These August and September lows represent the lowest price levels since April 2021, highlighting this area as a crucial support zone.
Consequently, an upward movement is anticipated, with POL potentially initiating a new bullish cycle.
From Sept. 6 to 13, the price rose by 25%, reaching a high of $0.45. This could have been the first sub-wave of the lower-degree uptrend.
Its next advancement from Sept. 17 failed to surpass the prior high before returning to $0.40.
Read more: Polygon Price Prediction 2024: POL Price Analysis
This sign of weakness should be considered; however, the bullish count is still intact as the price maintains a higher low.
If this outlook holds, a five-wave pattern to the upside is expected, potentially driving the price to a near-term target of $0.70.
Should a higher low be established during the subsequent retracement, this would confirm the bullish scenario, with further gains likely by the end of 2024.
