Polygon (POL) Reaches Critical Three-Year Support Level, Signaling Potential Comeback

Polygon, previously known as Matic Network, has faced significant challenges over the past few years. As an Ethereum scaling solution, Polygon is still

Cryptocurrency analysis firm IntoTheBlock has highlighted a critical support level for Polygon (MATIC) that could determine its future trajectory.

Despite being an Ethereum scaling solution, Polygon has faced the brunt of the bear market, with its native token $POL (formerly MATIC) plummeting around 66% in 2024 alone. To make matters worse, POL has seen a steep 23% decline over the past 30 days, signaling a prolonged bearish sentiment that is casting doubts among traders about its future.

However, with a market cap of $2.52 billion and a ranking of 37th in the market, Polygon still holds a significant position. More importantly, POL has now reached a critical three-year support level, raising questions about whether a major comeback is possible.

Let’s conduct a technical analysis to assess the critical elements that could define Polygon’s next move:

Key Support Zone (S) at $0.3292: POL has reached the $0.3292 level, which has historically acted as a strong support zone for the asset. This level has held up for nearly three years, and its stability has the potential to act as a springboard for a reversal. If buyers can defend this zone, we could see renewed bullish momentum.

Descending Resistance Line (R): The chart reveals a long-term descending resistance line that has contained POL’s price action since its peak. A breakout above this line would be a strong bullish indicator and could open the door for a rally toward higher levels, with potential targets around $1.40 and $1.80, where previous resistance levels lie.

Bearish Breakdown Potential (B): Despite the support at $0.3292, if sellers manage to push POL below this level, it could lead to a deeper bearish breakdown. A fall below this support zone could take POL to new lows, undermining any near-term recovery hopes.

RSI in Oversold Territory: The Relative Strength Index (RSI) is hovering around 31.95, close to the oversold threshold of 30. Typically, an RSI in this range suggests that selling pressure may be exhausted, potentially attracting buyers who see this as a buying opportunity. This could support a short-term bounce from the current support zone.

While Polygon has struggled with a prolonged downtrend, its three-year support level around $0.3292 has held firm so far. This could signal a pivotal moment for the token. If the support level remains intact, POL might stage a recovery, potentially targeting the descending resistance levels. A breakout from this resistance line could lead to a strong upward move, with $1.40 as a key medium-term target.

However, a failure to hold this support level could lead to a more significant decline, with little to no support below. Traders should watch this support zone closely, as it could determine the next major trend for POL.

This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.