The POL token from Polygon found itself in a challenging position, diverging from the generally bullish sentiment seen in the broader cryptocurrency market. This downturn has raised concerns among holders, particularly as many are currently facing unrealized losses. With October now upon us, the future profitability of POL holders hinges on the token’s ability to break out of its tight trading range.

September’s Trading Landscape

Throughout September, POL traded within a narrow range of $0.36 to $0.44. The upgrade aimed to enhance the token’s utility and flexibility within the Polygon ecosystem. However, this optimism proved short-lived, as POL reversed its gains during the last week of the month.

TradingView data revealed a decline in POL’s price from a high of $0.446 on September 28 to $0.398 by the month’s end. As of October 2, the token was trading at $0.38, reflecting a 5.6% drop for the day and a staggering 70% decline from its all-time high of $1.29 reached on March 13.

Profitability Concerns for Holders

The disappointing performance of POL stands in stark contrast to Bitcoin and several altcoins, which experienced notable gains during September. Data from Coinglass indicated that Bitcoin’s price rose by 7.29%, while Ether gained 3.56% during the same period. Unfortunately for POL holders, the situation is considerably bleaker, with approximately 95% of them currently sitting on unrealized losses.

According to IntoTheBlock, 81% of POL holders who have maintained their position for over a year have seen their investments lose 37% of their value. This reality underscores the challenges that POL faces as it enters the fourth quarter.

Recent Ecosystem Developments

Despite the price struggles, Polygon has continued to make strides in its development. Recently, Polygon Labs activated the Ahmedabad hardfork on the Proof-of-Stake (PoS) mainnet following a two-week testing period on the Amoy testnet. This upgrade represents a significant step in Polygon’s roadmap and includes three Polygon Improvement Proposals (PIPs)—PIP-30, PIP-36, and PIP-45.

These proposals aim to enhance the user experience for decentralized application (dApp) developers and users on the PoS chain. Notably, PIP-30 increased the maximum code size for dApps, allowing for more complex contract deployments. PIP-36 addressed issues with stuck bridge transactions, improving the overall efficiency of the network.

Technical Analysis of POL

Analyzing the POL/USDT pair on the 4-hour chart, the technical indicators suggest continued downward pressure. The Relative Strength Index (RSI) briefly bounced from the oversold zone but remains low, sitting at 30.61 at the time of writing.

Moreover, key moving averages signal weakening momentum. The 200-day Simple Moving Average (SMA) recently fell below the 100-day SMA on September 28, having crossed below the 50-day SMA just a day earlier. Such crossovers typically indicate bearish trends, suggesting that POL’s price may struggle to recover in the short term.

Historically, similar crossover formations have preceded price drops. For instance, following a previous bearish crossover on August 24, POL’s price fell from $0.576 to $0.415 by August 30.

Looking Ahead

As we move into October, POL token holders are eager to see whether the price can break out of its current narrow trading range. The combination of unfavorable market conditions and technical indicators creates an uncertain outlook. However, if the token can regain momentum, it may provide some relief to the significant number of holders currently facing losses.

Investors are encouraged to keep a close eye on market developments and technical trends, as these factors will play a crucial role in determining the future profitability of their investments in POL. For those looking to assess their current holdings, the POL Profit Calculator can provide insights into individual portfolio performance.

In conclusion, while September proved challenging for Polygon’s POL token, the forthcoming weeks may hold the key to recovery and renewed investor confidence. As the crypto market continues to evolve, the performance of POL will be closely monitored by both traders and long-term holders alike.