- The price of POL has stabilized near September lows, signaling potential bullish momentum ahead.
- Recent price action shows a double bottom pattern, suggesting a trend reversal.
- Traders should exercise caution as POL navigates critical support levels for recovery.
Polygon (POL) has been experiencing wild price swings since December 2021. After hitting an all-time high near $3, this token endured a tough correction. Now, as POL hovers around recent lows, signs point to a possible upward movement.
Investors are eagerly watching these developments, hoping for a resurgence after a lengthy downturn. Can Polygon (POL) meet these expectations?
Analyzing Polygon’s Price Action
The journey of POL has been challenging. By June 2022, the price dropped to $0.36, wiping out earlier gains. Two recovery attempts since then returned to this vital support level.
The $0.36 mark now serves as a crucial threshold, reflecting the market’s struggle for stability. Recent price action shows a WXY corrective pattern. The low of $0.35 on September 6 might indicate the end of this corrective phase.
If this analysis proves accurate, POL could be on the verge of a bullish trend. However, caution remains key. The lengthy correction raises questions about the timing of any rebound. The market may face one final retest of the $0.36 area or dip slightly lower to $0.32 before bouncing back.
Price Prediction: A Path to Recovery
On March 13, POL soared to $1.30, an impressive 85% increase from the January low of $0.70. Although a setback below $0.60 occurred by April 13, this decline was less severe than the previous mid-September drop.
Recent lows of $0.36 in August and September formed a double bottom pattern, suggesting a potential shift in momentum.Wave structure analysis indicates this downtrend has ended, signaling the completion of wave Z in the WXY correction.
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The lows recorded reinforce a critical support zone, setting the stage for a potential upward movement. From September 6 to September 13, POL rallied by 25%, reaching a high of $0.45. This increase hints at the start of a new uptrend.
However, the following advance failed to break the previous high, retreating to $0.40. This pullback marks a key moment. Establishing a higher low in the next retracement could confirm a bullish outlook.
If this pattern unfolds, a five-wave upward movement may drive POL toward a near-term target of $0.70, with even greater gains expected by the end of 2024. While POL shows signs of recovery, traders should tread cautiously.
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