- Polygon’s POL token has established $0.36 as a critical support level, signaling the potential end of its prolonged corrective phase.
- If this support holds, POL could initiate a new bullish cycle with a near-term target of $0.70.
Polygon’s POL token, formerly known as MATIC, has been on a rollercoaster ride since its all-time high in December 2021. With recent analysis suggesting a potential bullish trend, let’s delve into the current state of POL, its critical support levels, and its potential price movements.
Establishing Key Support Levels
Polygon’s POL token experienced significant price fluctuations, reaching its all-time high of approximately $3 in December 2021 before entering a prolonged correction phase. By June 18, 2022, the price had dropped to $0.36, erasing gains from the previous surge. This level has since been tested multiple times, establishing $0.36 as a critical support area.
Recent market behavior has indicated a potential bullish reversal. On September 6, POL hit a low of $0.35, possibly marking the end of the corrective phase identified by a WXY correction wave structure.
Potential Bullish Trend
If the analysis holds, POL could be on the cusp of a new bullish trend. However, given the extended correction period, further confirmation is necessary. The price hovering around the September 6 low could either represent the final retest before a reversal or suggest a slight move to the downside, possibly interacting with the horizontal zone’s lower level of $0.32.
POL Price Prediction
On March 13, POL reached a high of $1.30, marking an 85% increase from its January 24 low of $0.70. However, by April 13, the price had dropped below $0.60. A new downtrend began in March, hitting a low of $0.36 on August 5 and September 6, forming a double-bottom pattern.
This pattern suggests the end of a five-wave impulse, marking the conclusion of the higher-degree wave C and completing the WXY correction that started from the all-time high. The lows recorded in August and September highlight this area as a key support zone.
A New Bullish Cycle?
An upward movement is anticipated, with POL likely initiating a new bullish cycle. From September 6 to 13, the price increased by 25%, reaching a high of $0.45, potentially representing the first sub-wave of a lower-degree uptrend. Although the subsequent advance failed to exceed the previous high, retreating to $0.40, the bullish count remains intact as the price continues to maintain a higher low.
If this perspective is accurate, a five-wave upward pattern could drive the price toward a near-term target of $0.70. Should a higher low be established during the upcoming retracement, this would further validate the bullish outlook, suggesting additional gains are likely by the end of 2024.
Polygon’s POL token shows promising signs of a bullish reversal after establishing $0.36 as a key support level. While further confirmation is needed, the potential for an upward movement toward $0.70 could mark the beginning of a new bullish cycle. As always, investors should stay vigilant and consider the broader market conditions before making any investment decisions.
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