Polygon (POL) Could Be on the Verge of a 44% Correction to $0.23!

In this ongoing market downturn, the Polygon ecosystem (POL) has formed a strong bearish price action, suggesting that a massive price decline is on the way.

The Polygon (POL) ecosystem has formed a bearish price action in this ongoing market downturn, suggesting a massive price decline, as reported by a prominent crypto expert on X (formerly Twitter).

While examining the current outlook, the expert noted that POL is on the verge of a 44% price drop, which could potentially reach the $0.23 level.

This post on X has garnered massive attention from the crypto community due to its bold prediction. The potential reason behind this prediction could be the bearish market sentiment and the formation of bearish price action on the daily time frame.

According to the expert's technical analysis, with the recent price drop, POL has breached the support of its descending triangle price action pattern and has successfully retested the breakout area.

Now, based on the historical price momentum, if POL manages to hold below the $0.45 level, there's a high probability it could witness a 30% drop, reaching the $0.29 level.

At the moment, POL is trading below the 200 Exponential Moving Average (EMA) on the daily time frame, indicating it's in a downtrend.

On the other hand, the Relative Strength Index (RSI) for POL is present just above the oversold zone, suggesting that the asset has sufficient headroom to continue its price decline in the upcoming sessions.

Investors Dumping POL Tokens?

In light of the bearish price action and price prediction, investors and long-term holders have been observed dumping their tokens, as revealed by the on-chain analytics firm Coinglass.

Data from the spot inflow/outflow shows that exchanges have seen an inflow of $2.56 million worth of POL in the past 24 hours.

In the cryptocurrency landscape, inflow refers to the movement of assets from holders' wallets to exchanges, which could potentially signal dumping and sell-offs. Hence, it has the potential to create selling pressure and lead to further price decline.

As for the current price momentum, POL is trading at around $0.40 and has seen a price increase of over 2.75% in the past 24 hours.

However, during the same period, its trading volume went up by 15%, indicating lower participation from traders and investors compared to the previous day.