Polygon has been facing pricing troubles since switching from MATIC to POL. However, things may soon improve.
Notably, a bullish pattern has emerged on POL’s chart, which could lead to substantial growth.
Bullish pattern on Polygon chart
Polygon has recently experienced a significant price correction. According to CoinMarketCap, the price of POL has fallen by more than 3% in the last week. In the past 24 hours, its value has fallen by 1%, and the bearish trend continues.
At the time of writing, the coin is trading at $0.3645 with a market cap of over $2.75 billion, making it the 32nd largest cryptocurrency.
As prices continued to fall, most investors lost their profits, and there were only 10,300 POL addresses that actually made profits, accounting for a little more than 1% of the total number of investors.
This has also had a negative impact on the token’s social metrics. For example, the token’s social dominance dropped last week, reflecting its declining popularity.
The weighted sentiment has also entered the negative territory. This means that the bearish sentiment around POL is dominant in the market.
But the trend may change soon as a bullish pattern has emerged on the token’s chart. AMBCrypto’s analysis shows that a bullish descending triangle pattern has emerged on Polygon’s price chart. It appeared in September and the token’s price has been consolidating since then.
At the time of writing, POL is testing its support level. A successful test could push the coin up to the upper resistance of the pattern in the coming days.
POL faces uncertainty: will it rise or fall?
Other data sets for the coin also support the case for a successful test of POL. POL has seen an increase in exchange outflows.
The supply of Polygon on exchanges has fallen, while the supply off exchanges has increased. All three indicators indicate strong buying pressure.
Whenever this happens, it signals that prices may rise in the coming days.
Take a look at Polygon’s daily chart to get an idea of the upcoming targets. If buying pressure leads to an increase in price, it would not be surprising to see the coin make another push towards $0.43.
A breakout above this level could propel the coin further up to $0.46. However, if the bearish trend persists, Polygon could drop to $0.35.
Overall, the price of POL has fluctuated between $0.36 and $0.41. The coin has seen a slight increase, with a gain of nearly 4% in a month. However, in the past week, it has fallen by nearly 10% and is down more than 57% in the past six months. The relative strength index is 42.07, which suggests that it is neither overbought nor oversold. The nearest resistance level is at $0.43, while support is at $0.33.
If the price breaks the $0.43 resistance, it could climb to $0.50, a potential gain of more than 20%. But if it falls below $0.33, it could drop to around $0.28. Current indicators suggest that it could move in either direction.
Only 1% of Polygon investors are profitable. Indicators show that buying pressure is rising.