POL Price Prediction: Polygon (POL) Reaches All-Time Low, Will the Price Bounce?

Polygon has struggled in the current market cycle. Even after rebranding from MATIC to POL, the price failed to gain traction, consistently creating lower highs.

Key Takeaways

Polygon (MATIC) has struggled to recover in the current market cycle, especially after December 2024.

The crypto’s price is testing the lows reached in 2020, and technical indicators suggest more weakness lies ahead.

After reaching an all-time high of $2.92 in December 2021, the MATIC price has been struggling to recover.

The price action has led to several lower highs, the most recent in December 2024 (marked with red icon).

This time, the price is quickly decreasing from the $0.35 horizontal support area, which held since 2021.

The breakdown led to a new five-year low of $0.196 in March.

Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD ) are both in bear territory. The RSI is below 50, MACD is negative, and no bullish divergence has been spotted yet.

As a result, the weekly time frame suggests the MATIC price prediction is bearish.

The Countinuos Pressure On MATIC Price

The daily time frame offers a more optimistic outlook.

After a sharp decline from December 2024, the price is contained inside a descending wedge, a bullish pattern that usually causes the price to breakout.

The cryptocurrency is approaching the lower boundary of the pattern, and a decisive move will likely occur soon.

Technical indicators support this outlook. Both the RSI and MACD have generated bullish divergences (highlighted in orange), but they have yet to lead to a significant price movement.

Finally, the wave count shows a complete five-wave downward movement, which could be the leading diagonal in another long-term five-wave decline.

If a breakout occurs, the closest resistance will be at $0.40, formed by a horizontal resistance and the 0.382 Fibonacci retracement resistance level.

However, any potential breakouts will be viewed as bear-market rallies before the price continues its downward trend.

The Bottom Line

The MATIC price broke down from a key horizontal support area at $0.34, and it fell to a five-year low.

While the price could rebound in the short term, the long-term trend is bearish, and the price is trading below this zone.