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Polygon (POL) is among the altcoins that suffered the most from the challenges it faced, maintaining its position even as Bitcoin continued to exhibit robust momentum. Questions now abound on whether POL will bounce back and shoot for the stars.
According to data from TradingView, the weekly chart shows that the price of Polygon has been on the consolidating trend within a three-year descending triangle trend, which started at the beginning of the 2021 Bull Run.
Historical Support Zone
The recent downtrend Polygon is experiencing started way back on December 2, 2024, triggered by POL’s rejection from the upper resistance of the triangle at $0.76. According to the analysis by TradingView, the downturn drove the price down to a key support level between $0.28 and $0.41, which has historically been a support zone that consistently acted as a substantial area for rebounds to happen.
The trend is expected to help the altcoin bounce from the support level and target the 25-day Simple Moving Average (SMA). A break above the 25SMA would increase the likelihood of a breakout from the multi-year descending triangle pattern.
Will Polygon Recover?
The current support level for Polygon has always provided a solid foundation for its price recovery. As a result, it’s expected to follow the general performance of the king of Altcoins and Ethereum and the general market sentiment.
Should Ethereum’s recovery proceed without any serious challenge, it is expected to tag Polygon and several other strong altcoins alongside it and confirm a trend reversal that could initiate a breakout for Polygon. The next few days will be crucial in determining POL’s trajectory and whether the new support level will be the beginning of its recovery from an inevitable decline.
Reversal is Possible within the Next Few Days
By the time of writing, Polygon was selling at around $0.22, reflecting a modest increase in the last 24 hours, and according to analysts, it was consolidating after breaking out from below the key support level. Investors should now watch out for a $0.30 support level that could quickly surge to a $0.3051 resistance level. Moreover, The 34.33 Relative Strength Index (RSI) highlights that Polygon could be operating in the oversold zone, suggesting a reversal within the next few days. Nonetheless, if the price goes below this support level, things could turn opposite.
Factors that Could Revive Polygon
One of the factors that could work in favor of POL during this critical moment is the introduction of any new decentralized application built on the ecosystem, which could create renewed user interest and increase transaction volumes. The issue of institutional adoption has been a slippery one for Polygon. Still, its occurrence could be one of the missing links and, of course, community engagement with Polygon’s social channels where users could share their confidence and the future of the network.
Conclusion
There are mixed signals currently as Polygon sits on the threshold of a potential rebound. If POL holds on to the current support levels and the trend persists, the much-anticipated breakout will occur within the next few days. However, any decline in address activity leading to decreased transaction volume could hold back the momentum.
Frequently Asked Questions (FAQs)
What is a Polygon network?
Previously called the Matic Network, Polygon is a network of L2 solutions that aims to improve the scalability of the Ethereum blockchain and reduce transaction costs.
What assets does the Polygon network support?
The main asset of this network is POL, which covers the transaction fees. However, the network also supports a variety of other tokens, such as stablecoins and wrapped ETH.
How do POL tokens differ from other cryptocurrencies?
POL tokens differ from other coins like BTC or ETH in the same manner as any tokens differ from leading net coins.
Why do POL tokens have the same address as ETH?
That’s because the network is an ETH sidechain compatible with the Ethereum network.
Appendix: Glossary of Key Terms
Polygon: A cryptocurrency and blockchain platform that helps to make Ethereum transactions faster and cheaper.
Matic: A cryptocurrency for the Matic network used to pay transaction fees, stake, and govern the network. It is also known as the Polygon token.
Bull Run: A period where most investors are buying, demand outweighs supply, market confidence is high, and prices are rising.
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