Polygon Hits Three-Year Support: Is a Major Comeback Coming?

Technical Analysis

The technical setup for Polygon suggests that this support level could play a crucial role in defining its future trajectory. Here’s a closer look at the key elements:

• Key Support Zone (S) at $0.3292: POL has now reached the $0.3292 level, which has historically acted as a strong support zone for the asset. This level has held firm for nearly three years, and its stability could serve as a springboard for a reversal. If buyers can defend this zone, we might 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.

Is a Comeback on the Horizon?

While Polygon has struggled with a prolonged downtrend, its three-year support level around $0.3292 has held firm so far, potentially signaling a pivotal moment for the token. If the support level remains intact, POL might stage a recovery, 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 monitor this support zone closely, as it could determine the next major trend for POL.

Conclusion

Polygon (POL) has reached a critical support level that could serve as a launching pad for a comeback. While the token has faced significant bearish pressure, the technical setup suggests that a recovery might be possible if support holds. A breakout above the descending resistance line would further validate bullish momentum. For now, all eyes are on POL’s support at $0.3292, as a decisive move here could shape its outlook for the months ahead.